Electricity Generating Companies (GENCOs), have presented a seven-point demand to the Federal Government through Acting President, Prof. Yemi Osinbajo, at a meeting in Abuja asking for an immediate end to electricity rejection by the National Control Centre (NCC), Osogbo, Osun State, in collaboration with the Electricity Distribution Companies (DISCOs), Vanguard reports.
The GENCOs have also demanded a re-denomination of the annual concession fees from dollars to Naira, citing difficulty in accessing foreign exchange. Prof. Osinbajo was also told in clear terms that the GenCos could not continue to operate when their invoices are not being paid. Currently, they are being owed about N600 billion. The group also asked that the balance payment of about N213 billion of the Power Sector Special Intervention Fund still held by the Central Bank of Nigeria (CBN) be released to boost liquidity in the sector.
The GenCos also urged the Federal Government to release in full, the N701 billion recently approved for the Power Sector Payment Assurance Fund to clear the five-month backlog of unpaid invoices. About 20 per cent of that fund is yet to be released. They also told the federal government to take necessary steps to ensure uninterrupted gas supply to the plants to enable them take full advantage of the large market in the country. The GenCos also told Prof. Osinbajo that the permanent solution to the liquidity problem in the power sector remained a cost-reflective tariff and targeted subsidies.
Remittances from International Consumers was one of the issues for which the GenCos also asked for a review. Since the International Consumers pay in foreign exchange, they demanded that the receipts for power consumption from that category should be passed to them in foreign exchange, rather than in Naira, as that could assist in their foreign market operations.