GenCos back Fashola on declaration of eligible customers
Say DisCos’ force majeure notice out of place
The electricity Power Generation Companies (GenCos) have given their support to the Minister of Power, Works and Housing, Babatunde Fashola, for the declaration of eligible customers in the Nigeria Electricity Supply Industry (NESI).
They said it would stimulate and enhance competitiveness for efficient service delivery in the sector.The Association of Power Generating Companies (APGC), the umbrella body of the GenCos, said that the declaration of eligible customers by the minister was long contemplated in Section 27 of the Electric Power Sector Reform Act 2005 (EPSR) and could not be said to be force majeure as claimed by the electricity Distribution Companies (DisCos).
The Executive Secretary of APGC, Dr. Joy Ogaji, in a statement titled “The declaration of eligible customers – A timely intervention,” maintained that the declaration of eligible customers is the first among many steps that need to be taken if the nascent privatisation in the power sector will succeed.
According to her: “I am persuaded to believe that if the relevant agencies such as Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC) and the policy-makers provide the enabling environment, that this policy directive will lead to increased generation capacity, as GenCos would potentially ramp up their generation capacities to provide supply to eligible customers, address issues bothering on financial viability of the electricity supply value chain which is the main and immediate issue confronting Nigerians from enjoying the benefits of the power sector reforms.”
Ogaji, who stated that the recent notice for declaration of force majeure by the DisCos was out of place as the declaration of eligible customers was part and parcel of the provisions of the EPSR Act 2005, said that if there should be declaration of force majeure by any operator in the NESI, it should be the GenCos, which are being owed billions of naira for power generated.
She said: “I believe if there should be any force majeure, the generation companies should declare force majeure for a failure by the market in breaching the contract it had with them, taking power and not paying for it after selling all of it. After all, it was not foreseen that NBET cannot pay for 100 percent of its power as promised and contracted for and for TCN not able to wheel all the power Generating Companies can generate?
“If there is any one sitting on a force majeure event, it is the legacy generating companies who are suffering from the lacklustre performance of relevant agencies with accumulating debt and an unrecognised deemed capacity.”
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