The Nigerian Bulk Electricity Trading (NBET), has reported that Electricity Distribution Companies (DisCos) had market receipts of N26.811 billion for the month of June.
This was disclosed in a statement by Ms. Henrietta Ighomrore, the Head of Corporate Communications at NBET on Thursday in Abuja. The Market Receipt (MR) payment received for grid distributed electricity in Nigeria’s electricity industry.
NBET said EKO Electricity Distribution Company was the highest remitter in the June 2021 Electricity Market Payment.
What the NBET said
Ighomrore said, “Information showed that no DisCo met the 100% mark, however, EKO DisCo came close with a 93.4% remittance of its market receipts.
“The June 2021 market receipts from the DisCos totalled N26.811 billion, with the top three remitters being EKO, Abuja and Port Harcourt DisCos with 93.4%, 86.6 % and 76.4% respectively.”
She added that the June 2021 market payment had been disbursed to the Generating Companies (GenCos) in proportion to their invoice.
NBET remains committed to ensuring timely and efficient payments to GenCos to enable the generators fulfill their obligations and maintain sustainable supply of electricity to the grid.
“NBET is engaging with all stakeholders in the value chain, to ensure payment improvement and viability of the Nigerian electricity market,” she added.
She revealed that NBET is the administrator of the national power pool and the financial flow in the Nigerian Electricity Supply Industry (NESI) and had consistently demonstrated efficiency and transparency in the administration of the financial flow.
The NBET implements the Minimum Remittance Order issued by the Nigerian Electricity Regulatory Commission (NERC) to all DisCos; which sets the minimum percentage payment each DISCO is to remit to NBET on a month-to- month basis.
“NBET has continued to deploy strategies and initiatives to enhance market liquidity in the sector, through improving payments to the generation companies, supported by its power sector reform programme and the market discipline committee,” she said.
NBET has continued to deploy strategies and initiatives to enhance market liquidity in the sector, through improving payments to the generation companies, supported by its power sector reform programme and the market discipline committee,” she said.
She added that in 2016, due to a threat to Nigeria’s generation capacity, from gas shortages, some GenCos could not meet their obligations, leading to NBET’s implementation of its N701.9 billion Payment Assurance Facility (PAF).
Ighomrore stated that the PAF has been efficiently managed and disbursed from January 2017 till December 2018, resulting in a quantum leap of 6500 Mega Watts (MW) generation capacity to a 7659MW at the end of the PAF.
”The success of the N701.9 billion PAF led to sustainable generation capacity and increased available electricity, this success led to the birth of PAF 11.
“The implementation of PAF 11, a N600 billion facility for 2019/2020 later metamorphosed into the Power Sector Reform Programme,” she added.
What you should know
earlier the 11 Electricity Distribution Companies (DisCos) across Nigeria recorded a shortfall of N273.42 billion in 2020 and received a total of N542.73 billion out of N816.15 billion they billed their consumers. This is an increase of N42.46 billion from the total of N230.96 billion shortfall recorded in 2019.
In July, CBN disclosed that it disbursed the sum of N156.33 billion to Distribution Companies (DisCos) to boost electricity supply in the country.
The CBN also disbursed N36.04 billion to 17 Meter Asset Providers and nine DisCos, for the procurement and installation of 657,562 electricity meters.