Power generation companies (GenCos) have threatened to shut down their production should the Federal Government refuse to disburse N600 billion intervention to them.
This may lead to nationwide blackout from the Nigerian Electricity Supply Industry (NESI).
This was disclosed by the Executive Secretary of Association of Power Generation Companies (APGC), Dr. Joy Ogaji.
They told reporters in Abuja that the GenCos had been so indebted that their gas suppliers have refused further supply.
Ogaji said the situation had already compelled three GenCos to shut down their operations.
The spokesperson stressed that if the N600 billion is not released in time, a deliberate decision or economic forces could propel the remaining GenCos to stop production.
Ogaji said the GenCos had been receiving only 15 per cent of their invoices since June/July, 2019, whereas between 20 and 30 per cent of their invoices can sustain their operations.
She alleged that the Nigerian Bulk Electricity Trading (NBET) Plc had been threatening that the GenCos would not receive the intervention fund without consenting to the payment of 0.75 per cent administrative charge.
According to her, NBET Managing Director, Dr. Marilyn Amobi, has been asking the GenCos to forward their board resolutions to access the N600 billion.
Ogaji said the call was misleading since the Central Bank of Nigeria (CBN) had not released the fund.
The spokesperson stressed that CBN paid the previous interventions directly to power firms and gas suppliers.
She added: “We have heard the news, which was part of what we told you in September, that the Federal Government is working on releasing N600 billion for us. From that time till this moment, it is still news that the Federal Government is still working on it.
“Now, the reason we called this press conference is because NBET has been threatening the GenCos, especially the owners (investors), that she has the money with her, if only they will send the board resolutions, that she would pay the money. But the truth is that I have done my own findings; CBN has not released the money.
“And if you know how the N701 billion was dealt with, no money was released to NBET. CBN paid the money directly to all the GenCos and gas suppliers. Calling the GenCos owners and lying to them that she has the money is a misleading fact.
“So, if NBET’s excesses are not checked and this N600 billion is not released on time, whether we deliberately shut down or not, the machines will shut down by themselves. This is because gas suppliers have stopped giving gas to some of the GenCos.
“You are saying that power has reduced. If you check the market payment from the DisCos, July or June was 15 per cent. Out of that 15 per cent, we paid gas suppliers. So, what is left? A typical GenCo needs 20 to 30 per cent to be able to operate. If the money is released to us, power will continue; if it is not, the forces of economy will come to play.”