Power Generation Companies (GenCos) under the aegis of the Association of Power Generation Companies (APGC), says that the absence of Power Purchase Agreements, PPAs as claimed by the Nigerian Bulk Electricity Trading Company Plc, NBET entails that Gencos are exposed to the vagaries in the downstream electricity market:
The Companies quickly faulted claims by the NBET that only five Gencos have active power purchase agreements, (PPAs) describing such as a serious threat to the Nigerian Electricity Supply Industry, (NESI), in particular and the sector in general.
Executive secretary, APGC, Dr. Joy Ogaji, who stated also also denied claims that it plans to keep the country in darkness except federal government paid N1.6 trillion debts.
“The fact that NBET claims that they have only five active PPAs entails that most of the power plants do not have power purchase agreements (PPAs). “This situation is a scary scenario for any investor as no guarantee of any sort is in place to assure any form of return on investments,” she said.
She, however, disclaimed reports in some online media that quoted the Gencos operators insisting that the Federal Government most pay the over N1.6 trillion owned her members since 2013, hence total blackout across the country.
Ogaji had at a press conference in Abuja on Sunday, March 13, 2022 explained the critical challenges facing the Gencos. She noted that a situation where the energy dispatched by the power generators was used as an index for power generation capacity is detrimental to their survival.
Speaking on the negative implication of the debt situation, She said, “We are currently owed N1.644 trillion. One of the reasons that the power plants are down is due to inefficient management of the grid.”