Connect with us

Business

Discos Failed To Pay N510.53bn In 2020 – NERC

Published

on

Power distribution companies in the country failed to pay a total of N510.53bn for the electricity sold to them in 2020 by Nigerian Bulk Electricity Trading Plc, the Nigerian Electricity Regulatory Commission has said.
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 11 Discos were given a total invoice of N730.71bn for the energy received in 2020 but paid only N220.18bn to NBET, according to NERC data.
The power distributors received a total invoice of N52.13bn in January; N52.01bn in February; N52.62bn in March; N68.08bn in April; N68.09bn in May; and N56.27bn in June.
The Discos received a total invoice of N66.33bn in July; N63.62bn in August; N59.10bn in September; N62.95bn in October; N62bn in November; and N67.50bn in December.
But they paid N14.96bn in January; N13.18bn in February; N6.07bn in March; N10.67bn in April; N12.84bn in May; and N12.91bn in June.
They paid N12.91bn in June; N12.91bn in July; N14.99bn in August; N37.57bn in September; N22.47bn in October; N33.27bn in November, and N28.33bn in December.
NERC, in its latest quarterly report, noted that the financial viability of the Nigerian electricity supply industry had remained a major challenge threatening sustainability.
“The liquidity challenge is partly due to the non-implementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft and consumers’ apathy to payments under the widely prevailing practice of estimated billing,” it said.
It said the period of the lockdown introduced by the Federal Government as a measure to curtail the spread of COVID-19 pandemic in 2020 further affected Discos’ billing of post-paid customers.
“The severity of the liquidity challenge in NESI was reflected in the settlement rates of the service charges and energy invoices issued by Market Operator and NBET respectively to each of the Discos as well as the non- and low payment by the special and international customers respectively for the services rendered by the MO,” the regulator said.
According to the report, the Discos were expected to make a market remittance of 44.87 per cent during the second quarter of 2020 but only 28.05 per cent settlement rate was achieved within the timeframe provided for market settlement in the Market Rules.
The PUNCH reported on Monday that electricity consumers paid a total of N542.73bn to the Discos last year, out of a total bill of N816.15bn.

The Punch

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Banks’ CEOs Hold Emergency Meeting Over BDCs’ Forex Ban 

Published

on

By

Bank Chief Executive Officers on Thursday, held an emergency meeting on how to ensure compliance with the new forex directive of the Central Bank of Nigeria.

After the meeting, they spoke during a webinar organised to give an update on the banks’ preparedness to be the main channel of forex distribution, following the recent discontinuity of forex supply to the BDC operators by the CBN.

The executives assured the public that banks would make forex available to customers in accordance with the CBN’s directives.

After the last Monetary Policy Committee meeting, the Central Bank Governor, Godwin Emefiele, had ordered all Deposit Money Banks to set up teller points at designated branches across the country to fulfil legitimate FX request for personal travel allowance, business travel allowance, tuition fees, medical payments and SMEs transactions, among others.

Speaking at the webinar, the Group Managing Director/Chief Executive Officer, Access Bank Plc, Herbert Wigwe, said, “The banking industry as a whole was willing and ready to carry out this function. The banks have very strict compliance measures, in terms of verification and making sure that people who do apply are eligible.

“All Nigerian banks will be able to meet these requirements. If you look at all the branches nationwide, you will know that the banks have more than enough capacity to do this.”

He said if the banks saw any compliance issues, or people attempting to do things cunning, they would be reported to the CBN because the banks would ensure full compliance with the order.

The Group Chief Executive Officer, Guaranty Trust Holding Company Plc, Mr Segun Agbaje, while speaking on the capacity of the banks to meet the customers demand, said, “It is not only the CBN that has the ability to fund the market; the banks also have the resources to meet the demand, and we have agreed collectively that it will start immediately.”

Continue Reading

Business

NERC: Over 1m Electricity Consumers Have Received Prepaid Meters

Published

on

By

Prev1 of 2
Use your ← → (arrow) keys to browse
Prev1 of 2
Use your ← → (arrow) keys to browse

Continue Reading

Business

Labour Warns FG Against Electricity Tariff Hike 

Published

on

By

The Nigeria Labour Congress faulted plans to allegedly sell the Transmission Company of Nigeria, saying it will lead to an increase in electricity tariff.

The NLC President, Mr Ayuba Wabba, said this in a statement titled, “This Kite will not Fly’’ on Friday.

Wabba explained that instead of allegedly planning to sell the transmission company, FG should focus on improving the electricity supply.

He described the attempt to hand over the TCN to a few ‘privileged’ Nigerians as self-serving, obtuse, odious, morally reprehensible and criminal.

The NLC president said, “The TCN is a strategic economic asset of immense national security implications. This is because the TCN traverses all nooks and crannies of Nigeria.

“It will be wrong that our country will be deliberately exposed to an avoidable vulnerability and thus, provide an opportunity to others to restrain the Nigerian state.

“We apprehend that the planned sale of the TCN is only an attempt to further confound the people and concurrently raise electricity tariff. Unfortunately, this time around, Nigerians have had enough.

“The government cannot promise improved power supply to consumers by the planned sale of TCN. The under-the-table scheming as transparent privatisation cannot pass muster.

“It is an unsavoury narrative for our country, that even the privatised assets, which have survived the rapacity of the new owners, have been turned into unrealisable collaterals for unpayable loans.

“This constitutes a bone stuck in the throat of financial institutions and sundry creditors.”

Wabba explained that the plan would “fundamentally weaken the security of the nation and above all, deprive the people of their age-old investments in the commanding heights of the Nigerian economy”.

Continue Reading