11 Jan Discos’ indebtedness hits N326bn in nine months
The indebtedness of power distributing companies to the Nigerian Bulk Electricity Trading Company Plc and the Market Operator of the sector rose to N326bn between January and September 2021, the Federal Government has said.
Latest data on remittances to the sector by the distribution companies showed that the 11 Discos failed to remit N287.8bn to NBET during the period.
Also, the power distributors could not remit N38.31bn to the Market Operator in the same period, bringing their cumulative indebtedness to the sector to precisely N325.9bn, according to figures released by the Nigerian Electricity Regulatory Commission.
The NBET is an agency of the Federal Government that buys electricity in bulk from generation companies through power purchase agreements, and sells it through vesting contracts to distribution companies, which supply to end-users.
The Market Operator, an arm of the Transmission Company of Nigeria, is also a Federal Government agency and functions as the administrator/operator of the Nigerian electricity market.
An invoice of N612.26bn was reportedly issued by NBET to the 11 Discos as their bill for nine months, but the power firms remitted N324.46bn, leaving a shortfall of N287.8bn.
The power distributors include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola.
On their remittances to the MO, NERC stated that the total invoice issued by the Market Operator to the 11 Discos during the review period was
The Discos, according to the power sector regulator, have remitted N121.48bn out of N159.79bn., leaving a shortfall N38.31bn.
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