Gencos, Government, Ministry of Power

Power Generating Companies have no Basis Going to Court- Fashola

Posted: March 12, 2018 at 4:41 pm   /   by   /   comments (0)

The Minister of Power, Works and Housing has said that the power generating companies have no basis taking the Federal Government to court over payments to Azura Thermal Power Station. He however affirmed that that is their right and their prerogative, stressing that it is better than self-help, as it is consistent with the rule of law.

“While they seek refuge in a court of law, they must be ready to face scrutiny in the court of public opinion. The court of public opinion is a court of conscience and morality. In the court of public opinion, they must be ready to tell the citizens how they felt when other groups went to court to stop the implementation of tariffs approved by NERC in 2016.

According the Mr Fashola, who spoke during the 25th Monthly Power Sector Operators meeting hosted by the Akwa Ibom State Government and Ibom Power in Uyo said, “They must explain to this public court whether they went to court before government approved a N701 billion payment assurance guarantee to pay their monthly power bills.

“They must disclose to this court that they owed debts, from the pre-Buhari era, because their income had reduced to less than 50 percent.

“They must disclose to this court that they now receive about 80 percent income, and that this Government is now paying them revenues collected from international customers from the Republics Benin, Niger and Togo, in Dollars, as against the Naira payment they used to receive.” He added.

According to him, in both courts, they must disclose how they felt when some DisCos went to court to stop the enforcement of Provision of Promissory Notes, which was a condition that denied them access to the CBN NEMSF low interest loans.

They must tell the court of public opinion that the reason for going to court is because Government is making 100% payment to a new GenCo who has a different contract with a Partial Risk Guarantee, which they do not have, he said. They must also disclose to both courts that they held a meeting with Government and tabled their demands, which Government promised to look into one week before they went to court.

“They must, in good conscience, tell the two courts whether one week was enough time, to go to court and whether this action at the time when the sector is making progress does not suggest an intention to blackmail Government and hold the citizens hostage.

“Let me say very clearly to all operators that I get reports of many of the clandestine meetings that some of them are holding with a view to disrupt supply for political capital.” he said.

 

 

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