Electricity Generating Companies in Nigeria (GENCOs) have expressed frustration over the continued failure of the Nigerian Bulk Electricity Trading Company (NBET) to commit to the Power Purchase Agreements (PPA) reached between them.
A communiqué by Mr Ogbonna Onwumere, Head Research and Development, Independent Energy Watch Initiative in Abuja, stated that the GENCOS expressed their frustration at the end of the meeting of the association of GenCos. It said the GenCos were currently receiving less than 20 per cent of their invoices paid by NBET. The role of NBET is to give incentives to investors who have liquidity issues in the market. It said the liquidity issue was on the increase, adding that it was caused by the inability of NBET to meet its contractual agreements.
It said that the GenCos should not be made to suffer for liquidity issues that was not their creation. “The worsening market liquidity has culminated to a state of bankruptcy for the GenCos as they lack funds to carry out their operations and even to pay their workers. Some GenCos have not been able to pay salaries for upwards of three months,“ it said. It said the Gencos had unanimously resolved to use all available dispute resolution channels, including litigation, to compel NBET to comply with the terms of agreements.