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Buhari Yemi 99

Gencos copies Buhari, Osinbajo petition to NERC, says 0.75% charge toxic

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The crisis rocking the nation’s energy sector may be multiplying following the copying of a recent petition written by the body of power generation companies to the Presidency and other relevant agencies of government.

The body had before the end of September, petitioned the Nigerian Electricity Regulatory Commission (NERC), over a recent administrative charge imposed on member wishing to access the N600bn power intervention fund by the Nigerian Bulk Electricity Trading company (NBET).

The anger of the body amongst others is that such surcharge is designed to put undue burden on members, who had been working and struggling for government intervention to power generating firms in Nigeria.

Business Hilights Abuja Bureau chief reports that the copies forwarded to the presidency were photocopies of the duplicate acknowledged by the NERC.

Other officials/offices copied in the letter were the Minister of State for Power; Minister of Finance; Permanent Secretary, Ministry of Power; Director-General, Bureau of Public Enterprises; managing director, Gas Aggregation Company of Nigeria; and NBET’s managing director.

Another angle to Discos anger is that whereas the 0.75 per cent administrative charge on Gencos was for gas transactions conducted on their behalf, as opposed to what obtained in the past, the electricity contends that the charge was not backed by any market rule, adding that NERC should call NBET to order.

The body of the letter read in part, “Gencos believe that one of the primary responsibilities of the regulator in a newly privatised market should be to prevent market participants’ behaviour that could disrupt the market and significantly degrade market efficiency and system reliability.

“Gencos are also of the view that processes entrenched in the Electric Power Sector Reform Act, Market Rule and other applicable codes must be followed in dealing with issues at all times.

“Arbitrariness, duress or undue influence should not be allowed in a nascent market as ours.”

The presidency is yet to respond even though it was not originally the body whom the petition was meant for.

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