NBET’s indebtedness to GenCos affecting liquidity in power sector – Association
NAN-HE-22
Liquidity
By Kingsley Okoye
Abuja, Nov. 9, 2016 (NAN) The Independent Energy Watch Initiative (I-WIN) has said that the failure of the Nigerian Electricity Bulk Trading Company (NBET) to pay the accrued money due to the Generating Companies (GenCos) has affected liquidity in the sector.
Mr Ogbonna Onwumere, Head Research and Development, (I-WIN) revelealed this in statement made available to the News Agency of Nigeria(NAN) in Abuja on Wednesday.
Onwumere said the non-payment of the monies owed GenCos by NBET had also resulted in the inability of the GenCos to buy the needed gas for generation.
He said that the non-payment had also resulted in the inability of the GenCos to pay the salaries of their staff, maintain and operate facilities.
“I think it is obvious that if all the monies are paid, the GenCos will be able to perform their duties generally, because they will be able to manage their machines, purchase gas from the suppliers.
He said it was obligatory on NEBRT to keep to the terms of the agreement, noting that the GenCos were only demanding for their legitimate right as stated in the terms of contract between it and NBET.
He said that since the inception of privatisation of the power sector, the GenCos had never been paid complete, noting that GenCos had been receiving less than 20 per cent of their invoices from NBET.
“NBET is not keeping to their side of the contract they signed.”
He said that the GenCos had threatened to stop producing energy and shut down production, if their entitlements was not paid by NBET.(NAN)
KC/IA
Edited by Idris Abdulrahman