GenCos Drag FG To Court Over N1trn Debt

Electricity Distribution plant Photo: NAECNG

The Power Generation Companies in Nigeria (GenCos) have dragged the Federal Government before a Federal High Court sitting in Abuja, over over debts in excess of N1 trillion.

The GenCos, which said members were on the verge of collapse, alleged preferential treatment to two of its competitors with intent to harm their business interests.

They accused the government of giving preferential treatment to Azura Power West Africa Limited and Accugas Limited to the detriment of the Nigerian Electricity Supply Industry and the power sector as a whole.

In a suit filed by 13 GenCoss, the defendants are the government, the Central Bank of Nigeria (CBN) Minister of Power, Works and Housing, Nigeria Bulk Electricity Trading (NBET) Plc, NBET, Azura and Accugas.

The GenCos, represented by Mainstream Energy Solutions Limited (Mainstream), Transcorp Power Limited (Transcorp Power), Egbin Power Plc (Egbin) and Northsouth Power Company Limited (Northsouth), are arguing that the defendants, have continuously meted out unfair treatment to them, their investors and suppliers.

Specifically, the electricity firms stated that they had made huge sacrifices, bearing the excruciating burden of not being paid for electricity generated and sold to the NBET Plc.

Specifically, they stated that only 80 percent of invoiced amounts are paid whenever the federal government chooses to pay, with 90 percent of gas supply invoices paid directly to gas suppliers out of the said 80 percent payment, adding that whatever is left of any payment tranche was hardly sufficient for any meaningful activities of the GenCos.

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