Power distribution companies in the country failed to remit a total of N173.35bn to the Nigerian Bulk Electricity Trading Plc for the electricity sold to them in the first four months of this year.

The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells through vesting contracts to the Discos, which then supply it to the consumers.

The bulk trader reiterated that some of the Discos had yet to meet up with the approved minimum remittance.

The Discos were given a total invoice of N224.84bn for the energy received in the four-month period but only paid N51.49bn (22.90 per cent) to NBET, data obtained from the NBET on Wednesday by our correspondent showed.

The 11 power distributors received a total invoice of N52.13bn in January; N52.01bn in February; N52.62bn in March; and N68.08bn in April.

But they paid N14.96bn (29 per cent) in January; N13.04bn (25 per cent) in February; N6.07bn (12 per cent) in March; and N9.84bn (14 per cent) in April.

The PUNCH reported last week that NBET failed to pay the power stations on the national grid a total of N181.39bn from January to April this year.

According to NBET, the payment to the Gencos are based on receipts from the Discos.

Power distribution companies in the country saw their revenue collection rise a record N127bn in the first three months of the year.

The Nigerian Electricity Regulatory Commission, on January 3, 2020, released December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 for the 11 Discos.

NERC said the order was to establish the impact of the exogenous macroeconomic parameters and costs outside the control of the utilities in 2019 and projections for 2020.

It said the order had further prescribed minimum market remittance threshold payable by the 11 Discos and the projected tariff path until 2021.

The regulator said the Federal Government had, in the interim, committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers.


Source: Punch