GENCOs Lament Poor Funding

The Association of Power Generation Companies of Nigeria (APGCN) has raised alarm that members would soon run out of funds to maintain their generation capacities if adequate measures are not urgently taken to mitigate high operational costs.
Executive Secretary of the association, Joy Ogaji, said for the past three decades, the Power Holding Company of Nigeria (PHCN) generating plans were run to the ground without paying attention to scheduled maintenance and overhaul.
In a statement made available to the press, she said, “this new breed of determined operators has continued to maintain standards by increasing their national capacity even when they are not paid rightly for their services.”
The Executive Secretary said the association members (GENCOS) are operating at a loss, as revenue percentage received does not cover their operational costs.
According to her, the generating plants can no longer sustain their operations as a result of high outstanding debts.
The association urged the Transmission Company of Nigeria (TCN) to improve the reliability of the power grid system to avoid incessant black outs.
APGCN also called on relevant government agencies to facilitate the payment of the outstanding invoices, as a matter of urgency.
The association explained that GENCOs were yet to be paid the deemed capacity since taking over the PHCN assets in November 2013, and noted that payments for deemed capacity over this period have run into billions of naira.
It said such payment would have been used in maintaining the generating plans and paying for already purchased or contracted gas and services.