Power generating companies (Gencos), on Monday, wrote the Presidency, the Nigerian Electricity Regulatory Commission (NERC), as well as other concerned government agencies over a recent administrative charge imposed on them.
In a letter dated September 30, 2019, addressed to the chairman of the NERC, the Gencos rejected the 0.75 per cent administrative charge imposed on them by the Nigerian Bulk Electricity Trading company (NBET).
The companies sent a copy of the letter to the Office of the Vice President, Office of the Chief of Staff and Minister of Power.
Other offices copied in the letter include that of 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.
Newsbreak.ng reported recently, that crisis could be looming in the power sector, over disagreement between Gencos and NBET, over a disputed administrative charge allegedly imposed on them for gas transactions conducted on their behalf, as opposed to what was charged in the past.
The Gencos argued in the petition, 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.”