Power generation companies in the country on Wednesday said gas producers were cutting down supplies to thermal electricity generating plants as a result of the N200bn indebtedness to them by the Gencos, The Punch reports.

According to the Executive Secretary, Association of Power Generation Companies, Dr. Joy Ogaji, this has impacted negatively on the state of electricity generation across the country, as she called on the government to help prevail on the industry to clear the N600bn debt being owed the generation companies.

Ogaji explained that the stability in the Niger Delta had actually led to improvements in gas production, but noted that the several billions of naira being owed by the Gencos was limiting their ability to access gas. This, according to her, has also made oil and gas companies like Total and Shell to demand for upfront payments before they can supply gas to power producers in the country.

 

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