APGN says DisCos debt to GenCos hits N2tn

Dr. Joy Ogaji Executive Secretary, Association of Power Generation Companies, revealed that Distribution Companies (DisCos) owe Generation Companies (GenCos) N2trn debt.

While speaking during the ‘Power Sector Dilemma: Issues, Challenges, Opportunities And Strategic Key Solutions’, she argued that the GenCos were not owed N500bn as being reported but N2trn.

“GenCos are not owed N500bn as accepted by NBET. We are owed N2 trillion, while we owe suppliers N1trn,” she said.

She further explained 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.

NBET is the manager and administrator of the electricity pool in the Nigerian electricity supply industry, NESI. It collects tariffs on behalf of the market – DisCos, DisCos and the TCN.

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 added that power generation depended on market demand.

“Our generation is driven by demand, and the demand is not there. Nigerians are not demanding for power, and we are in huge debt.”