Invoice fraud: GenCos counter DisCos, demand evidence

The Association of Power Generating Companies (APGC) has countered the alleged accusations made by some Distribution Companies (DisCos) of inflating the monthly energy invoice.

The Executive Secretary of APGC, Dr. Joy Ogaji, in a statement yesterday, said the DisCos should provide evidence to prove the allegation, saying, “He who asserts must prove.”

She said the allegation raised by the DisCos would be escalated to the Minister of Power, Works and Housing, Mr. Babatunde Fashola, who is expected to intervene and deal with the issues.

“It is a fact that GenCos, who are entitled to about 60 per cent of invoiced energy bills, face the greatest risk in the electricity value chain with an outstanding unpaid invoice of over N500bn, deserve pity rather than ridicule. Trying to smear our image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated, and that market participants can do as they please,” it said.

On the call for removal of capacity charges from the invoices, APGC, representing over 20 GenCos, said it was a global practice.

“Capacity payment is needed in order to guarantee energy supplies and to keep the prices as low as possible. Without a capacity payment system, new investments in power plants will come to a standstill. It incentivises the GenCos to make capacity available when it is needed most,” Ogaji said.