The Nigerian Electricity Regulatory Commission (NERC) Wednesday disclosed that about N2 billion out of a possible N12 billion had been remitted to the Operator of the Nigerian Electricity Market (ONEM) otherwise known as the Market Operator by three of the 11 electricity distribution companies in the Nigeria’s Electricity Supply Industry (NESI) as cost of energy allocated to them within November.
NERC said as at Monday, the total amount of money for energy costs that was remitted to the Market Operator was about N2 billion while an outstanding remittance of N10 billion was still pending.
It, however, added that more payments from other distribution companies may have been received by the Market Operator which was yet to update it on the situation since then; the distribution companies that have so far made their statutory remittances are Eko, Ikeja and Kaduna distribution companies.
The chairman of NERC, Dr. Sam Amadi, stated this at a press briefing in Abuja where he also hinted that the commission had given defaulting distribution companies up till today to make their statutory remittances to the Market Operator and avoid regulatory sanctions.
Amadi said: “As at yesterday only Eko, Ikeja and to some extent Kaduna have remitted what they are supposed to remit to the Market Operator. Today, NERC wrote a letter informing the operators that by their license they are under obligation to make all necessary remittances to the Market Operator’s accounts.
“And we have given a deadline of Thursday, 4p.m. for distribution companies to remit their statutory remittances to the Market Operator’s accounts; we have also indicated that every disco that have removed the mandate of the Market Operator has to restore it back into the account for market settlement.”
He made further clarifications on the expected energy remittance sums saying: “The Market Operator is the one that is daily receiving these remittances, so I would assume that market operation office will have up to date report, but as at Monday only about N2 billion have been paid and N10 billion outstanding.
“We expect by Friday, the verified and attested bank statement of all the distribution companies to NERC for us to verify that such remittances have been made. The copies of the letters have been sent to the discos.”
Amadi also talked about energy revenues that were collected by the new owners of the distribution companies in November for the month of October stating that the commission expects complete adherence to extant provisions on such situation as contained in the interim rules of the market by the distribution companies.
“Another issue is the issue of payment of October revenue that is collected in November by the new owners, we had in the interim rule also provided that such payment should be made 100 per cent to the Market Operator’s accounts based on the understanding with the DG of NELMCO (Nigeria Electricity Liabilities Management Company) that such monies should be paid to the Market Operator to use to deal with the gaps in the market.
“All distribution companies are therefore mandated to transfer such collections to the Market Operators’ accounts immediately.”