We have capacity to make power sector work – GENCOs

THE Generation Companies of Nigeria, GENCOs, has argued that its members have the capacity to stimulate and sustain development in the Power sector of the nation’s economy. Executive Secretary, Association of Power Generating Companies, APGC, Dr. Joy Ogaji, called for the urgent review and tackling of policies as well as critical problems in the sector. She stated that: “We need to urgently review all the prevailing policies, orders and documents, conduct a viable and independent stress test on the generation, distribution and transmission capacities to enable us plan proactively and build the sector. “Proffer a pragmatic solution to provide local/foreign guarantees (WB/AFDB) and to deal with systemic or market risks such as regulatory risks, gas supply risks, revenue risks, etc; guaranteed payment plan for generation companies to enable them improve generation and implement expansion plans.” Ogaji also argued that the DISCOs’ low collection efficiency and a corresponding lack of significant investment in metering customers, was a threat to effective collection efficiencies, calling for structures to be put in place to eliminate the high distribution and non-distribution losses across the distribution and transmission value chain. She called on government to ensure that: “the monitoring and enforcement agencies in the sector procure and improve data quality to enable efficiency and better future planning and projection. “The CBN should expeditiously disburse the N701.9bn which is behind schedule in payment and resuscitate the disbursement from the Nigerian Electricity Market Stabilisation Facility (NEMSF), being provided to service providers in the power value chain to address shortfalls in Power sector revenues, settle legacy gas debts and shortfalls in revenue to herald a contract-based regime.” “Ensure NBET’s keeps to its contractual/payment (100%) obligations to Gencos under respective PPAs, to enable Gencos meet their payment obligations to their Gas Suppliers under respective GSAs and forestall impending blizzard of arbitrations and litigations. “Guarantee full payment to other market participants (Gencos, TCN, Market Operator and Gas Suppliers).” She also called for adequate sensitisation to “educate Nigerians to understand the need to pay for electricity, and assist the DISCOs to put in place effective pre-paid metering system whilst putting in place guaranteed payments to GENCOs to provide a high level of availability.”

 

Credits/Sources: www.vanguardngr.com