Power generation companies, GENCOs, are threatening a country-wide black out over disagreements with the Nigerian Bulk Electricity Trading Company, NBET.
They have warned on the consequencies of NBET not honouring the agreement it has with them. The Executive Secretary, Association of Power Generation Companies, Dr Joy Ogaji at a news conference in Abuja on Sunday, expressed concern on the dispute with NBET.
She warned that GenCos are facing liquidity challenge due to NBET’s breach of Power Purchase Agreement terms which stipulates 100 percent payment for power generated and supplied.
NBET is a trading licensee regulated by the Nigerian Electricity Regulatory Commission, NERC, to undertake bulk purchase and resale of electricity in the transitional electricity market.
She said NBET’s management is behaving as “the Alpha and Omega” authority that has the capacity to make or mar generation businesses in the country.
Ogaji stressed that the situation is so bad that to remain in business and provide power to Nigerians, GenCos have to plead, lobby, and beg to be paid for power generated and utilised.
“NBET has now reduced its role to blackmailing and threatening GenCos investors and chairmen who have refused to concede to its illegal demand of a 0.75 percent charge on invoices paid to gas suppliers.
“NBET has clearly threatened not to release payments due GenCos until they accede to its request, urging them to agree for a quid pro quo with the 0.75 percent administrative charge.
“The situation is truly grave and completely unprecedented as NBET has completely shed its role as a licencee of the industry and has taken on some sort of regulatory role.
The executive secretary said the matter had been reported to NERC and other high authorities but nothing has been done and called on the federal government through the board chairman of NBET to review the professional conduct of its management and ensure that business etiquettes are instilled.