Electricity generation companies (Gencos) in Nigeria’s power market now rely on other sources of revenue to keep their operations running as well as to ensure that power is supplied to the national grid, the Executive Secretary of Association of Power Generation Companies (APGC), Dr. Joy Ogaji, has disclosed.
Ogaji said that the Gencos’ revenues had been hit hard by the lack of contract sanctity in the country’s power market. She stated that the market now runs on a ‘best endeavour’ which is loose and gives room for repeated business conjecture.
“The current market situation gives room for conjectures, no contract is binding, and all are on best endeavour.”
According to her: “The impact is more on the Gencos, who due to lack of (effective) contracts to backstop the gas supply agreements (in terms of bankability), are in a tight corner.”
Source: THIS DAY