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Again, GenCos threaten to shut down power plants nationwide



The Association of Power Generation Companies (APGC) has threatened to shut down power plants across the country.

In a statement issued in Abuja on Sunday, Joy Ogaji, executive secretary of APGC, said the decision was made owing to the indebtedness of the Nigerian Bulk Electricity Trading Company (NBET) to the GenCos.

APGC, the umbrella body of the GenCos, said its members will not accede to the 0.75% administrative charge by NBET for payment of gas invoices on their behalf.

“NBET has now reduced its role to blackmailing/threatening GenCo investors/Chairmen who have refused to concede to NBET’s illegal demand of a 0.75% charge on invoices paid to gas suppliers,” Ogaji said.


“NBET has clearly threatened not to release payments due GenCos until they accede to NBET’s request, urging them to agree for a quid pro quo with the 0.75% administrative charge.

“This singular action by NBET, may lead to shutdown of power supply by GenCos, who have unanimously agreed to call the bluff of NBET.

“A lot of Nigerians are aware of the liquidity challenge Generating Companies (GenCos) are faced with due to NBET’s breach of the Power Purchase Agreement (PPA) terms of 100% payment for power generated and supplied.

“GenCos indebtedness to their gas suppliers is due to NBET’s indebtedness to them. No Genco has any outstanding gas payment that is more than what NBET is owing the Genco. Put differently, NBET is indirectly charging 0.75% for paying its debt to GenCos!!!”

In January, the electricity generation companies threatened to shut down power plants nationwide if their challenges were not addressed.

Ogaji had said the challenges are gas constraints, on-going maintenance of power plants and low demand by electricity distribution companies (DisCos).

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