GENCOS Threaten Force Majeure If New Electricity Tariffs are Delayed

Electricity generation companies (GenCos) say they will declare a force majeure and down tools if the Federal Government goes ahead to delay the commencement of the new service tariff plan billed to start July 1.

Joy Ogaji, executive secretary of the Association of Power Generation Companies (APGC) in a phone interview, threatened that the operators who are owed considerable sums of money, would drag the Federal Government to an arbitration court in the UK over the matter.

According to the GenCos, “the DisCos have been arguing that they are not able to take more power because the tariff is not cost-reflective, how come now that a cost reflective tariff has been approved, and it will become effective tomorrow, the same DisCos ran to the national assembly and start lobbying for it to be postponed.”for further reading, click on https://businessday.ng/lead-story/article/gencos-threaten-force-majeure-if-new-electricity-tariffs-are-delayed/

SOURCE: BusinessDay Newspaper         June 30, 2020.