Electricity generation companies (Gencos) in Nigeria’s power sector may be forced to declare force majeure on their operations anytime soon on account of accumulated debts owed them by the market since 2013, a document has disclosed.
The document obtained in Abuja indicated that the Gencos were weighed down by the huge financial debt the market owed them. It equally showed the Gencos’ frustration with the settlement status of their invoices by the Nigerian Bulk Electricity Trading Plc (NBET) which it accused of being inefficient and failing to pay them 100 per cent of their invoices as reportedly agreed in their Power Purchase Agreements (PPAs).
According to document which contained the views of the Gencos on the Business Continuity Regulation of the Nigerian Electricity Regulatory Commission (NERC), the Gencos are seeking that the regulation is holistic in its implementation instead of simply focusing on them and the distribution companies (Discos) alone. In it, the Gencos claimed the NBET had not fulfilled its obligations to them, noting that the contractual agreements they have with the agency are not respected.