The Nigerian Electricity Regulatory Commission (NERC) has said it will not be involved in the constant demand by power generation companies (Gencos) in Nigeria’s electricity market to ensure the market recognises and include capacity charges in their monthly bills for payment to the market.
It said, the Gencos have power purchase agreements (PPAs) with the Nigerian Bulk Electricity Trading Plc (NBET), which contains payment for capacity charges, insisting that on the strength of this, it would not get involved as it understood the sanctity of such contracts must be respected.
The Gencos, through their association, the Association of Power Generating Companies (APGC), recently alleged that the NERC had connived with the electricity distribution companies (Discos) in the market to deny them of payment for capacity charges.
According to them, even though capacity payments were global norms in the electricity supply industry and play critical roles in enabling the Gencos to optimise their power generation capacities, they were yet to receive the payment and would want it paid for.
Source: THISDAY
