The power Generation Companies (GENCOs) have called on gas marketers to sell the product to them in Naira denomination against the current practice of indexing the price in US dollars, Vanguard reports.
Recall the Nigerian Electricity Regulatory Commission (NERC), had recently proposed to the Federal Government for a review of gas pricing to GENCOs from dollar to naira. The commission argued that it had become imperative that the pricing policy be reviewed to relieve the electricity market of the pressure from foreign exchange, following Nigeria’s current economic challenges, which it said impacted on electricity production by GENCOs, which pay for gas in dollars.
The call by GENCOs also tallied with the position of the Distribution Companies (DISCOs), which asked for harmonization of currency for all transactions in the market. GENCOS, which made the call in a communiqué issued at the end of the 2nd quarter market participatory and key stakeholders’ interactive forum, in Abuja, also called for alignment of market payment with the gas payment cycle.