Gencos petition Presidency, NERC over admin charge


Power generation companies on Monday petitioned the Nigerian Electricity Regulatory Commission, the Presidency and other relevant agencies of government over a recent administrative charge imposed on Gencos.

In a letter dated September 30, 2019, addressed to the chairman of the NERC, the Gencos resisted the 0.75 per cent administrative charge imposed on them by the Nigerian Bulk Electricity Trading company.

Our correspondent observed that the power generators sent a copy of  the letter, which was also acknowledged by the NERC, to the Office of the Vice President, Office of the Chief of Staff and Minister of Power.

Other officials/offices copied in the letter were the Minister of State for Power; Minister of Finance; Permanent Secretary, Ministry of Power; Director-General, Bureau of Public Enterprises; managing director, Gas Aggregation Company of Nigeria; and NBET’s managing director.

It was reported that NBET imposed a 0.75 per cent administrative charge on Gencos for gas transactions conducted on their behalf, as opposed to what obtained in the past.

In the letter, the Gencos argued that the charge was not backed by any market rule, adding that NERC should call NBET to order.

It read in part, “Gencos believe that one of the primary responsibilities of the regulator in a newly privatised market should be to prevent market participants’ behaviour that could disrupt the market and significantly degrade market efficiency and system reliability.”

“Gencos are also of the view that processes entrenched in the Electric Power Sector Reform Act, Market Rule and other applicable codes must be followed in dealing with issues at all times.”

“Arbitrariness, duress or undue influence should not be allowed in a nascent market as ours.”