NGO faults supply of gas to GENCOs on international pricing template

The Network for Electricity Consumers Advocacy of Nigeria (NECAN) says the sale of  gas to Electricity Generating Companies (GENCOs), using international pricing template is not in the best interest of Nigerians and the GENCOs.

The President of NECAN, Chief Tom Akinbogun, told the News Agency of Nigeria (NAN) in Abuja on Wednesday that the  supply of gas to the  GENCOs with global price  benchmark was resulting in high cost of generating electricity.

According to him, the inability of the GENCOs to pay for more gas due to high price of  the product  is also limiting their capacity  to generate more power.

“We wonder why Nigeria will allow price of gas that we need to power the electricity generating plants to be in dollars, as If Nigeria is a dollar country.

“ Regardless of the international pricing of gas in dollars, Nigeria should  price  its own  product in such a way that  it will not  be affected by International Monetary Fund, World Bank and Organisation  of  Petroleum Exporting Countries (OPEC)   pricing template.“

He said the challenge of gas supply should not be a problem to generating electricity for Nigerians, given the high deposit of gas in the country.

Akinbogun said it was very important for government agencies involved  in the provision of gas for electricity generation  to consider pricing gas in  local currency

On new power sector road map approved by the Federal Government, Akinbogun said the short comings arising from the implementation of the previous road maps  necessitated the introduction of a new power plan.

He said it was necessary that government should investigate the factors responsible for the non implementation or shortcomings in the previous road maps in the sector.

He, however, called for a strong political will on the part of  government  and  power stakeholders in the  implementation of  the new power sector plan.

Akinbogun  also advised  the Nigerian Electricity Regulatory Commission (NERC ) to  be firm on its regulatory responsibilities in the sector.

“ Each time we point out to NERC that the rule is not being followed, that meters are not being rolled out by DISCOs; that time limit is not being followed; that some DISCOs are not investing in the right way.

“ We are supposed to protect the public from being exploited, each time we point the things out to them they just change the rule, instead of making the operators do what the law says.

“The operators are making free money; they are over charging  people; they are not applying the rules,“ he said.

On transmission, he advised the Federal   Government to consider handing over the transmission aspect of the chain to the private sector, given the privatisation of the sector and the inability to fully wheel electricity generated by the GENCOs. (NAN)