In view of the volume of debts rising to N600bn owed electricity generation companies (Gencos), they are currently weighing the declaration of inability to continue business which will translate to nationwide blackout.
A top official of the group confided in our correspondent in Abuja that the pilling of accumulated debts owed Gencos by the market since 2013 has gotten to unbearable stage and the companies are considering force majeure.
Gencos also revealed in a report that it is not comfortable with the settlement status of their invoices by the Nigerian Bulk Electricity Trading Plc (NBET) which it accused of being inefficient in paying 100 per cent of their invoices as reportedly agreed in their Power Purchase Agreements (PPAs).
Facts from the Business Continuity Regulation of the Nigerian Electricity Regulatory Commission (NERC), showed that Gencos are seeking that the regulation is made holistic in its implementation instead of simply focusing on them and the distribution companies (Discos) alone.
According to Gencos, “the NBET had not fulfilled its obligations to them, noting that the contractual agreements they have with the agency are not respected.
“It is further imperative to bring to the attention of the commission the various challenges of the Gencos with the cost of generating electricity on the rise.
Sources say the Minister of Power, Works and Housing has been weakened by the happenstances in the power sector considering all the high hopes he gave to Nigerians on steady power supply at the inception of the administration in 2015.
It was not clear if this was why he has been away from public activities in recent time.
