GenCos reject NLC’s allegations of extortion

The Association of Power Generation Companies (APGC) has stated that allegations by the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, claiming electricity Generation Companies GenCos are engaging in “institutionalised extortion” and make case for “phantom subsidy,” is a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.

A statement by the Chief Executive Officer of APGC, Dr Joy Ogaji, while acknowledging the frustrations of Nigerians regarding the unstable power supply, said to label the legitimate operations of power firms as “robbery” and a “grand deception” is a simplistic and inflammatory narrative that ignores the complex realities of the industry.

“We also strongly refute the insinuation that the proposed government support for the sector is a clandestine plan to “settle the boys” ahead of elections.”

She said such a claim is baseless, offensive to the professionals working tirelessly in the sector and undermines the critical liquidity interventions needed to keep the lights on.

“It may be necessary for the NLC and its co-travellers to identify the robbers and those engaged in the deception. But it certainly cannot be the GenCos who are working around the clock to ensure that electricity is generated in spite of the huge challenges associated with the business.”

She added that the companies are worried that in an attempt to remain relevant, the NLC has forced itself into an area where it lacks the requisite competence.

“The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges, which is visibly clear to everyone but calls for clarification too on the issues.

“This write-up is against the backdrop of the news trending in the sector, that GenCos are fraudulent, hence require auditors and legal experts to investigate them for requesting their unpaid and accumulated receivables for power/electricity generated and consumed but not paid for,” she said.

“Should the NLC and any other institution find it necessary, let it be known that GenCo books are ready for any forensic examination that they can be subjected to.  It is a fact that GenCos, who are entitled to about 60% of the market receivables following their invoiced energy bills, face the greatest risk in the electricity value chain with an outstanding unpaid invoice of now over six trillion (N6trn) naira.”

She said GenCos deserve pity and not castigation, ridicule and victimisation and those trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace.

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