DisCos’ Debt Hits N2tn – GenCos

The Association of Power Generation Companies has blamed the Distribution Companies for the low power generation in the country.

Speaking at an event in Lagos on Thursday, the Executive Secretary of the association, Dr Joy Ogaji, said the DisCos have also refused to pay up the N2trn debt owed them.

Ogaji revealed that the GenCos were owed N2trn and not N500bn as being reported, adding that its members also owe suppliers N1trn.

She added that the GenCos had not been able to make power available due to the huge debts being owed them by the Nigerian Bulk Electricity Trading Plc (NIBET)

Ogaji further explained that although the GenCos currently had enough power generating capacity, the market was not available as the DisCos had not been able to take all power generated.

“Nigerians don’t want power because there is no demand for it. For instance, Egbin, which has over 1000 capacity, has not been able to generate 800MW because there’s no demand,” she said.

She explained that power generation depended on market demand and Nigerians are not demanding power, which resulted in huge debt.

Ogaji also faulted the capacity of the national grid to take the whole of power generated by the generating companies.

She said: “We have the capacity to generate more for the country, but the national grid has not been able to take everything we produce. Then we get blamed for companies shutting down and leaving for other countries.

“As we speak, there is yet proof that Nigeria needs power because if the country needs power, all hands will be on the ground to ask for more than what we currently generate, and be willing to pay for it. That is when we can be held responsible for not increasing generation.”