GenCos Mull Direct Sale to Heavy Consumers Over Payment Default

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The Managing Director of Niger Delta Power Holding Company (NDPHC), Chiedu Ugbo, has disclosed that electricity generation companies (Gencos) in Nigeria are considering the option of selling some of their generated power directly to heavy consumers following the continued failure of distribution companies (Discos) to conveniently pay for capacities generated and sold to them

Speaking on the side-lines of the October 2016 edition of Nextier Power Dialogue in Abuja, Ugbo said the option of direct sale to heavy electricity users like steel plants was being mulled by the Gencos.

He said the option of direct contract was considered by the Gencos for the simple reason that the Discos have often failed to adequately pay for whatever volume of power they get from them despite indications that they are paid by heavy power consumers.

Ugbo, however, said the proposal would need the approval and declaration of the Minister of Power, Works and Housing, Babatunde Fashola, because Nigeria’s power policy would not permit operators to independently choose who to sell their services or products to.

Source: Energy Mix

 

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