FG pays GenCos N39bn for January power generation

The Federal Government has revealed that the Electricity Generating Companies (GenCos) have been paid N39 billion, being the settlement for January 2022 payment cycle.

This was revealed in a statement issued at the weekend by Nigerian Bulk Electricity Trading Plc (NBET).

The NBET is an agency of the government that buys electricity in bulk from GenCos through Power Purchase Agreements and sells it through vesting contracts to the electricity distribution companies(which then supply to end-users)

The bulk trader in the latest statement promised that the GenCos will later receive another N9 billion through the Power Sector Reform Programme(PRSP)

NBET said, ” The N39 billion to GENCOs in first tranche of payments towards the settlement of January 2022 Payment Cycle.

“Another N9 billion from the PRSP has been approved and processed by NBET as further payments to the GenCos”, it added.

The statement revealed the new payment would give DisCos the opportunity to settle gas suppliers their outstanding for the period.

The new payment it was gathered is for the settlement of the 25 power generation companies out which 22 are gas-fired while the three (3) are hydropower generation companies.

While the GenCos’ invoice for the period under review could not be ascertained as at press time, EnergyDay gathered that GenCos had earlier claimed that the FG was owing them a total sum of N1.644trillion for unutilised capacity.

Joy Ogaji , Executive Secretary of the Association of Power Generation Companies (APGC) said GenCos could not meet their obligations to gas companies in terms of payment and lack of foreign exchange to conduct the required maintenance.