Hours after the Nigerian Government announced the release of over N200 billion to Power Generation Companies, popularly known as GenCos to improve gas supply to power plants so as to boost electricity supply during the Coronavirus lockdown, the companies have denied receiving money for that purpose or as bailout funds.
Executive Secretary of the Association of Power Generation Companies, APGC, Joy Ogazi says “for the records, Gencos have not received fresh funds from anyone. What Gencos have been paid is payment for energy produced and consumed for 2019”.
The GenCos say they are not politicians and they “take exceptions to our name being used to score political points. Gencos are private business men with patriotic zeal”. They insist that
“Gencos have not received any funds of any nomenclature- palliative, stimulus, Coronavirus funds etc. We are currently being paid for monies owed for 2019 full stop”.
Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mele Kyari had announced that “The Federal Government has made payment of over N200 billion for power in the 2 or 3 days, this will go a long way in making sure that those payment issues are resolved and we are engaging as government to make sure that those payment issues are fully settled“.
Managing Director of the Transmission Company of Nigeria, TCN, Usman Gur Mohammed who also spoke along with Kyari after the meeting with Minister of Power, Saleh Mamman and other public sector players in the industry said there is gas availability but there are several power plants that do not have gas supply agreements. “The suppliers always divert it to other places and from time to time, we always have constraints of gas and that is a big problem to us“.
The GenCos however say that “It is imperative to state that while political points are scored, Nigerians are misled and incensed against the Operators. Gencos have in recognition of the importance of power in a time such as this made adequate power available for all Nigerians”.
MediaDimensions gathered that data available on the website of the Advisory Power Team indicate that in March when the lockdown started while power generation capacity in the country was 8,318.07 megawatts, only 3,912.47 megawatts was evacuated by TCN for distribution leaving 4,405.61 megawatts stranded.
In the first two weeks of April, available power generated was 8,269.31 megawatts with 3,951.23 megawatts transmitted leaving stranded power of up to 4,961.96 megawatts. It will be recalled that power supply across the country worsened in the months of February and March with TCN blaming the situation on poor gas supply to power plants for GenCos to generate more megawatts for transmission and distribution to Nigerian homes and businesses.
Mohammed who also shifted the blame to distribution companies, popularly known as DisCos said there is need for investment to evacuate more power. “The order NERC issued recently is going to assign responsibility on the side of the DisCos for them to be able to pay for capacity that they fail to take. That will compel them to put investment in the network and will compel them to meter customers”.
Meanwhile, Secretary General of the National Union of Electricity Employees, NUEE says GenCos are only paid for the value of the gas components of their operations with no payments for Operating Expenses, OPEX, Over Head and other Daily Recurrent Expenditure.
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