GenCos liquidity shortfall exceeds N1tr

The Executive Secretary, Association of Power Generation Companies (APGC), Barr Joy Ogaji, yesterday said the  current shortfall in liquidity challenges facing the electricity generation companies (GenCos) has exceeded N1trillion.

In a telephone interview, she noted that the N701billion Power Assurance Guarantee, which the Federal Executive Council (FEC) approved for the firms in the first quarter (Q1) of 2017, has been exhausted.

According to her, there was hope that the Federal Government would make the electricity distribution companies (DisCos) pay at least 80 per cent of their invoices but the government has not realised it.

She said: “The major problem that the GenCoss are facing now is that of liquidity. The N701billion is over. The government has not succeeded in making the DisCos to pay at least 80 per cent of their invoices. The N701billion got finished in December. We don’t know how the GenCos will survive.”

Insisting that the major problem confronting the companies is that of liquidity and not gas supply, she said the GenCos have not exhausted their present allocation of gas to power.

The inability to pay for the gas, according to her, is responsible for the low utilisation of gas.

She said: “We have neither been able to pay for gas nor provide the gurantee.”

The Minister of Power, Works and Housing, Babatunde Fashola had late last year told reporters in Minna, Niger State that owing to the Power Assurance Guarantee payment to GenCos, their monthly payment had risen 20 per cent to 80 per cent, bringing production to 7,000megawatts (Mw).

Meanwhile, the  Managing Director, Transmission Company of Nigeria (TCN), Mr. Mohammed Gur Usman had last year told reporters in Abuja that the increase in the penalty for gas flaring by the Department of Petroleum Resources ( DPR) would lead to increase in gas to power to further boost power supply in the country.

But  Ogaji insisted yesterday that liquidity and not gas is the problem of the companies.

RESPONSIVE IN-ARTICLE

Just In

FG raises ministers, perm secs, others’ tour allowances.
2022/09/03 05:29:22

1 DjG2E OZBUh7jTfODD 8cw

Masari withdraws as Tinubu’s running mate!
2022/07/10 16:53:36

Bola Ahmed Tinubu

Edo Central senatorial candidate congratulates Tinubu.
2022/06/13 03:43:37

Tinubu

Ebonyi 2023: Ogba, Odii bicker over PDP governorship
2022/06/13 03:43:16

Ebonyi 2023

S’Court Justices deplore poor service conditions
2022/06/13 00:53:25

Justice Ibrahim Tanko Muhammad