Isaac Anumihe, Abuja
Generation Companies of Nigeria (GenCos), have written to Nigerian Electricity Regulatory Commission (NERC) to protest the imposition of 0.75 per cent administrative charge on their revenues.
They have also gave an indication of exploring other legal options if NERC fails to act in their favour.
Speaking to Daily Sun, in Abuja, Executive Secretary of GenCos, Dr Joy Ogaji, said that the GenCos have written to the regulatory authority (NERC) as a preliminary step.
“We have written to NERC” she said, adding that apart from shutting down their operations over Federal Government’s administrative charge, GenCos would equally explore other options that are legal.
“We are exploring further options” she said.
Earlier, GenCos had posited that as a licensee of Nigerian Electricity Regulatory Commission (NERC), Nigerian Bulk Electricity Trader (NBET) was not supposed to take such an action without the approval of NERC.
“It should be noted that NBET, like other market participants, is a licensee of NERC and as such is expected to understand that in a regulated market, every expense/cost must be backed by a regulatory approval for effective computation of the market tariffs
“The generation companies are not aware that such approvals have been issued by NERC nor is there any policy directive to this effect.
“The fact that NBET is placing the extortionist 0.75 per cent “administrative charge” on GenCos who are already convulsing, in the Nigerian Electricity Supply Industries (NESI) is an aberration on the duty of care placed on NBET.
“In addition, going by the principle of privity of contracts, thermal GenCos have contractual obligations to pay their gas suppliers. If they do not pay, that burden remains with them.
NBET claims that thermal GenCos have not been making pro-rata payments for gas from monthly invoices paid by the market. For example, from the energy invoice paid to each GenCo, NBET expects each thermal.