v id="m_1302547942493875041ydpda9cd05cyiv9124162089yui_3_16_0_ym19_1_1551437936512_6882">The federal government has ascribed the inability of the Nigerian Bulk Electricity Trading Plc, NBET, to honour its financial obligations with electricity Generation Companies, Gencos, to issues of low remittance by the distribution companies.
Latest data from the NBET shows that GenCos are currently being owed N364.11billion by the bulk trader for electricity generated, sold and fed into the national grid from January to October 2018.
NBET buys electricity in bulk from Gencos through Power Purchase Agreements and sells through vesting contracts to the distribution companies, which then supply it to the consumers.
NBET received total invoices of N499.79billion from the Gencos for electricity delivered in the 10-month period but only paid N135.68billion to them.
The average energy sent out by the Gencos was 3,584.55 megawatts hour/hour in January; 3,820.37MWh/h in February; 3,904.65MWh/h in March; 3,867.53MWh/h in April; 3,597.26MWh/h in May; 3,128.87MWh/h in June; 3,182.18MWh/h in July; 3,519.55MWh/h in August; 3,382.76MWh/h in September, and 3,593.47MWh/h in October.
NBET paid the Gencos N6.08billion for January invoices of N48.23billion, N20.75billion out N48.27billion in February; N13.39billion out N52.50billion in March; N14.12billion out of N50.98billion in April; N15.09billion out of N49.62billion in May; and N13.83billion out of N47.64billion in June.
The agency paid N15.08billion out of N51.79billion in July; N10.287billion out of N50.69billion in August; N14.977billion out of N47.79billion in September, and N12.075billion out of N52.279billion in October.
The Nigerian Electricity Regulatory Commission noted in its latest quarterly report that the challenge of poor remittance by Discos had remained a serious concern, describing it as one of the main causes of the liquidity crisis facing the Nigerian electricity supply industry.
It said, “Low remittance adversely affects the ability of NBET to honour its obligations to Gencos while service providers (Transmission Service Provider, Market Operator and NERC) struggle with the paucity of funds impacting their capacity to perform their statutory obligations.
“To address the poor remittance by Discos, the commission has commenced enforcement actions against Discos found to have engaged in unacceptably low remittances to NBET and the MO, factoring in all the parameters embedded in the tariff model.”
The inability of NBET to make full payment to the Gencos is said to account for the sub-optimal growth, inefficient operation and the current dire situation of the Gencos, which has a negative impact on the entire power sector.