The performance of the Power sector is currently being hampered by huge debt totally about N800bn. This came to light on Wednesday when it was revealed that gas companies were cutting their supplies to thermal electricity generating plants as a result of the N200bn indebtedness by the Gencos.
Meanwhile, the generating firms are lamenting that the N600bn debt being owed them has impacted negatively on the state of electricity generation across the country.
Declaring their support for the recent declaration of eligible customers in the sector by the Minister of Power, Works and Housing, Babatunde Fashola, the power firms called on the government to help prevail on the industry to clear the huge debt.
Executive Secretary, Association of Power Generation Companies, Dr. Joy Ogaji, told journalists that the inability of the firms to adequately pay gas suppliers was the major reason why many thermal power plants were starved of gas supply despite improvements in gas production.
She said, “For us to be able to procure gas, we need money. Currently, gas companies are owed several billions by us. We are being owed nearly N600bn and we are owing gas companies nearly N200bn.
“Most of them now say they cannot supply anymore until we pay. In fact, most of the companies like Shell and Total, they now do what we call pay-before-service. And since the market is paying us 29 per cent out of the expected 100 per cent, how do we pay for the gas?
“Some of these power companies that you’ve heard about cannot put all their machines on, they will just select from maybe out of five machines, they will just put on one or two, depending on what you can pay for with respect to gas. That’s the situation and it is a precarious and pitiable state.”
Meanwhile, Ogaji has called for a regulatory framework from the Nigerian Electricity Regulatory Commission to enable access to power from the generation companies as eligible customers.
