The Association of Power Generation Companies (APGC), said the declaration of willing buyer and willing seller (eligible customers) by the Federal Government was a timely intervention to salvage the challenges in Nigeria Electricity Supply Industry.(NESI).
APGC, in a statement by its Executive Secretary, Joy Ogaji in Abuja, said it became necessary to clear the air on eligible customer declaration because of recent reports and national discourse about the policy.
She said the clarification was necessitated by several media publications justifying why the declaration was ill-fated for the market and that it would lead to its eventual collapse.
“Part of the development following the declaration of eligible customer is the recent declaration of “ force majeure“ by the Distribution Companies (DISCOs).
“The declaration of the eligible customers pursuant to Section 27 of the Electricity Power Sector Reform Act 2005 on May 19, 2017 and recently issued regulation by NERC to guide its implementation, has been a trending news for the right and wrong reasons.
According to her, with stranded generation capacity in the electricity market and poor market liquidity, declaration of eligible customer is the brilliant way to liberate the electricity sector from its current monopoly.
`I believe if there should be any force majeure, the generation companies should declare force majeure for a failure by the electricity market in breaching the contract it had with the GENCOs.
“If there is any one sitting on a force majeure event, it is the legacy generating companies who are suffering from the lackluster performance of relevant agencies with accumulating debt and an “unrecognised deemed capacity.“