By SUNDAY ABBA, Abuja
The Association of Power Generation Companies (APGC) refuted the allegations of extortion and subsidy levelled against it by the president of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, while commenting on the state of the nation’s power sector.
The rebuttal was contained in a statement signed by Dr (Mrs) Joy Ogaji, Executive Director/Chief Executive Officer (CEO), APGC and made available to the press on Wednesday in Abuja.
It read: “The attention of the Association of Power Generation Companies (APGC) has been drawn to the recent statements made by the President of the Nigeria Labour Congress (NLC), Comrade Joe
Ajaero, concerning the state of the nation’s power sector.
“We view these allegations, which include claims of “institutionalised extortion” and a phantom subsidy, as a misrepresentation of the facts and a disservice to the ongoing efforts to stabilise Nigeria’s electricity supply industry.
“While we acknowledge the frustrations of Nigerians regarding the unstable
power supply, we must firmly reject the NLC’s characterisation of the sector’s
challenges.
“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.
“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.”
The GenCos expressed worry that in an attempt to remain relevant, the NLC had dabbled into an area where it lacks the requisite competence.
APGC however admitted that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges, which is visibly clear to everyone.
“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.
“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.
“GenCos deserve pity and not castigation, ridicule and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated, and that electricity market participants can do as
they pleased on checked,” the GenCos clarified further.