The Nigerian Independent Power Producers (IPPs) are demanding the Federal Government to state categorically that the Federal Ministry of Power will pay the bill for any generated power that is sold to consumers at any point that the Nigeria Bulk Electricity Trader (NBET) fails to meet its agreed payment obligation.

The additional written agreement said to be essential in unlocking the potential huge electricity addition to the grid will not only provide them guarantee, but will also give their financiers the comfort to commit their monies to building their plants.

They said their financiers are also asking for the agreement because so much confidence has been lost in the power sector considering experiences of huge debts owed by NEPA, PHCN and therefore cannot trust government enough even with so much comfort already provided by setting up the bulk trader.

The Nigeria Electricity Regulatory Commission (NERC) is said to have licensed several Independent Power Producers with an estimated 13,000 potential megawatts but many plants are yet to take off.

The IPP operators are also said not to be comfortable with NBET capitalisation which is expected to reach $1.2 billion with the entire expected fund from various sources added together.

They are, therefore, asking the Federal Government to increase funding to the bulk trader to provide an additional comfort to investors, indicating its capability of taking up any liability that may arise from the power distribution end.