By John Obi
The Association of Power Generation Companies (GenCos) has warned of imminent shutdowns due to unpaid debts totaling N4.7 trillion. The GenCos are facing a financial crisis, with the government owing them a significant amount, leading to fears that many power plants may stop running or be denied access to gas supply. This is due to the fact that the government has refused to pay electricity subsidies, leaving the GenCos with no clear path to recoup their losses.
Current matters understands that the GenCos are being
owed a staggering N4.7 trillion, mostly in the form of unpaid subsidies.
It was also gathered that the government has not paid the required subsidies, leading to the financial strain on the GenCos.
Towards the development,the GenCos are warning that if the debt is not addressed urgently, many power plants may shut down or be forced to reduce operations.
Additionally,the unpaid debt also impacts gas suppliers, who may stop supplying gas to power plants leading to grave consequences on the economy.
