Gencos Threaten Blackout Over N2trn Debt

Power Generation Companies in the country have threatened that debt owed them may result in another blackout if not paid immediately.

The remark was made on Sunday in a statement by Colonel Sani Bello, the Chairman of the group.

At least, over N2 trillion is believed to be owed power generating companies by both public and private concerns across the country.

The Minister of Power, Adebayo Adelabu had recently disclosed that lack of funds is crippling the operation of power companies in the country, particularly discos.

The federal government had also increased electricity tariff in the country by over 200 percent to ensure liquidity for the companies so that they can improve electricity supply.

Adelabu said the hike in tariff only affected a small number of electricity customers.

Bello who revealed that over 90 percent of debt owed Gencos by customers remained unpaid, stated that the problem is affecting the operations in their plants, calling for “immediate and expedited action” to solve the problem to avert a total blackout that could lead to security challenge in the country.

Gencos said: “The GenCos therefore called on the Federal Government and key stakeholders to urgently address the issue of inadequate payment for electricity generated by them and consumed on the national grid, insisting that the liquidity challenge threatens the continued operation.

“GenCos are of the position that the liquidity challenge threatening the continued operation of their power generation plants must be addressed urgently, and sustainably too. Besides being owed huge debts, GenCos also are operating under very harsh monetary and fiscal conditions, occasioned by the economic realities that face the country today.

“The flow of money within the power industry is one of the fundamental problems preventing Nigerians from enjoying continued and sustainable improvement in electricity supply.

“Expeditiously solving these issues would enable GenCos to meet their critical needs which would, in turn, ensure that they sustainably generate power, to enable Nigerians to have better access to reliable electricity supply. GenCos would like to re-emphasise that this request requires urgent attention.”