•Firms may pack up soon, says group

The Federal Government is owing power generation companies (GenCos) over N400 billion, Association of Power Generation Companies (APGC) Executive Secretary Mrs. Joy Ogaji has said.

She said the debts were from November 2013 to last month.

Mrs. Ogaji, in an interview with The Nation, said Egbin Power PLC was owed N93 billion and Niger Delta Power Holding Company (NDPHC), N105 billion.

Others are Ughelli Power Company ( N50 billion ), Geregu Power Plant( N80billion), Kainji, Jebba and Shiroro Hydro power plant (N30billion).

The amount excludes debts owed Olorunsogo and Omotosho power plants, she added.

Mrs. Ogaji said the debts were hampering the firms’ performance, urging the government to pay up to enable them buy gas.

She said: “The generation companies can no longer pay salaries; they can’t even pay for gas and the gas companies are no longer selling the product to them, as a result of the debts. Banks are not ready to advance credit to the GenCos again. This means that the power firms cannot get money to buy gas. Also, banks are not sure of getting their money back from the GenCos, even when they offer them facility.”

The GenCos, she said, did not have money to maintain their equipment, and pay contractors.

According to her, four of the contractors have stopped working because they are being owed.

Mrs. Ogaji said the generating plants may pack up soon, since they were not being maintained promptly.

She urged the government to hold the DisCos accountable to the terms of their agreement and make them to pay, adding that the GenCos should not get involved.

Mrs Ogaji said: “When generation companies were invited to buy these assets, the government promised that the bulk trader set up to take the power said the GenCos should not worry about payment, but now the bulk trader is not paying up these debts,’’ adding that the GenCos didn’t have any contract with the DisCos.

She said the association was engaging the government at various levels and working out lasting solutions to the sector’s problems.

Mrs. Ogaji regretted that the solutions were coming rather too slowly. She said: “All we have been hearing is that the government is working out plan; the generation companies are not part of that plan, the government should involve the generation companies in their plan,”expressing the opinion if you are finding a solution for the gencos let them be part of that solution to know if the solution is viable and sustainable’’.

NDPHC General Manager, Corporate Communication, Yakubu Lawal, confirmed that the company was being owed about N100 billion.


http://www.energywatchng.com/fed-govt-is-owing-gencos-over-n400b/

How?

Federal government or the distribution companies?

The FG doesn't buy directly from the generating stations so where and how did this debt come about?