NLNG Corporate Caring banner FirstGem 3rd anniversay lecture Fidelity bank card banner Emerald Energy Institute Camano banner

Senate intervenes on debts owed GENCOs by FG

By Mayowa Okekale, Abuja on 15/04/2016

Gmail icon

Views: 1,880


Senate President Bukola Saraki has mandated the Senate Committee on Power to liaise with the Central Bank of Nigeria (CBN) and Federal Ministry of Finance on how to address the issue of heavy debts owed to the Electricity Generating Companies (GENCOs) in the country.

He also directed the committee to meet with the relevant stakeholders on how to address the problems of transmission and capacity needs of the electricity generating companies as it would amount to a huge problem when electricity is generated but cannot be transmitted.

Saraki spoke today in Abuja when a delegation of GENCOs visited him. He said that efforts must also be put in place to ensure that adequate gas is made available to the GENCOs to meet the demand by the Electricity Distributing Companies (DISCOs).

According to the Senate President, the objective of the engagement of the Senate Committee on Power  with CBN and the Finance Ministry is to ensure that the debts owed the GENCOs are paid so as to enable the companies meet up with their targets.

He urged the Senate Committee on Power to ensure that the problems of generation and distribution are resolved, stating that it makes no economic sense to  generate 10,000 megawatts of electricity when it cannot be distributed to end users.

Saraki who called for a quick solution to the problems affecting electricity distribution. He urged the Senate Committee to ensure that there is always adequate gas supply to the electricity generating companies so as to “bring some confidence into the chain of activities in both the generation and distribution of electricity.”

Earlier, the leader of the delegation, Engr. Mohammed Daudu, had told Saraki that the GENCOs are owed N213 billion, covering the period November 1, 2013 to January 31, 2015. He said that a second segment of debt is the shortfall during the transition electricity market (TEM) from February 1, 2015 to date, which is yet to be disclosed by the National Bulk Electricity Trader (NBET).

Engr. Daudu said the Federal Government had initiated a settlement of the first segment through the CBN/Nigeria Electricity Stabilisation Fund but up till now, less than 40 per cent of the money has been released to the GENCOs. He lamented that a member of the electricity generating companies that contributes 35 per cent of the power grid is yet to be paid any money.

He therefore appealed to the Senate President to prevail on the CBN to conclude plans on the payment of the stabilisation fund.

Daudu, who complained of scarcity of foreign exchange, told the Senate President that the spare parts and other equipment used for the operation of the GENCOs are largely imported, but lamented that there is scarcity of foreign exchange for the transaction.

He complained that the GENCOs are not allowed to include Value Added Tax (VAT) when selling their products to the DISCOs, suggesting that VAT be included in the bulk purchase to cushion the effects on their revenue.

The delegation leader described non-availability of gas as the biggest challenge befalling the electricity generation companies. He explained that if there is additional gas input of 500mmcf to the generating companies there would be increased electricity generation to 10, 000 megawatts from its present capacity of 2,673.4 megawatts of electricity.

•Photo shows Senate President Saraki.

Source News Express

Posted 15/04/2016 5:26:15 PM

 

 

CLASSIFIED ADS

 

You may also like...
2023: Let Osinbajo, other gladiators allow PMB speak,...

Boko Haram kills 100 in fresh Gwoza raid...

NJC changes gear on Onnoghen, Muhammad

Umahi signs 2017 Ebonyi Budget into law

Police dismisses BBC report on Anambra restaurant allegedly...

Activist backs Obasanjo, says Buhari has failed woefully...

Police deploys Special Force to Zaki Biam

Ogun APC produces 2 governorship candidates

Kwara explains cracks at Geri Alimi Underpass •Berates...

Ohanaeze demands regional govt., 6-year single term presidency,...

Terrorism: Troops nab 8 foreigners, 7,898 other suspects...

CBN assures of continued forex supply

 

Latest News BREAKING: Robbers attack commercial bank in Ekiti, blows up entrance with dynamite Rotary Club laments high rate of STIs, unsafe abortions, unwanted pregnancy Kogi, Bayelsa Polls: HURIWA berates Police for compromising citizens’ security •Wants media blackout for DSS Youth strategic to the Nigerian Project — Dare Child Protection Network enjoins children to shun bullying, cultism in schools Lawyer shot dead in court APC NEC meeting: Protesters demand Oshiomhole’s immediate sack Justice Nwosu-Iheme: How ‘Uniformed Policemen’ abducted me, killed my orderly in Benin City Rivers serial killer makes U-Turn, denies being guilty Sanusi floors Ganduje as court dissolves other Kano emirate councils Gunmen attack commissioner, kill driver Judge stops proceedings as Maina bleeds in court during trial

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (564,424 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (453,089 views) Shameless Genevieve Nnaji exposes breasts in public (402,397 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (336,896 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (304,413 views) 10 cars more expensive than Jets (283,115 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (259,370 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (257,626 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (239,137 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (225,576 views) Lagos plane crash: Journalist releases victims’ names (201,914 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (198,573 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (110) Business & Economy (4,580) Business Verdict (87) Columnists (1,147) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (708) Features (845) Global Business Monitor (493) ICT Monitor (68) International (4,228) Interview (212) Live Commentary (30) Love Matters (176) Maggie's Blog (490) News (54,231) Opinion (1,424) Pidgin (17) Politics (11,786) Religion (1,122) Sports (2,230) Stock Watch (40) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera