International customers failed to remit N2.59bn invoice to market operators ― NERC

International customers in the 2020 second quarter, failed to remit N2.59 billion of the N4.10 billion invoice given to them by the Market Operator (MO) for electricity supplied.

The Nigerian Electricity Regulatory Commission (NERC) stated this in its 2020 second-quarter report uploaded via its website.

Except for Compagnie Energie Electrique du Togo–CEET which paid N1.51bilion  in respect of services it received from MO, Societe Nigerienne d’electricite – NIGELEC, Societe Beninoise d’Energie Electrique – SBEE made no payment.

The Commission states that the severity of the liquidity challenge in the Nigerian Electricity Supply Industry (NESI) was reflected in the settlement rates of the service charges and energy invoices issued by MO and NBET respectively to each of the DisCos.

However, it said non-and low- payment by the special and international customers respectively for the services rendered by MO was a contributory factor to the liquidity challenge.

During the quarter under review, it said special customers Ajaokuta Steel Co. Ltd and the host communities did not make any payment in respect of the N0.32billion and N0.05billion invoices issued by NBET and MO respectively.

“It is noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC) has partly contributed to liquidity challenges being experienced in the industry,” it stated.

However, he said the settlement ratio to the expected Minimum Remittance Threshold (MRTs), having adjusted for tariff shortfall,  indicates that DisCos need to improve on their performance.

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“Whereas DisCos were expected to make a market remittance of 44.87% during 2020/Q2, only 28.05 per cent settlement rate was achieved within the timeframe provided for market settlement in the Market Rules.

“Therefore, DisCos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT, “the report stated.

Meanwhile,  the Commission disclosed that it received a total of 114 accident reports from licensed operators during the quarter under review.

It said the accidents, unfortunately, resulted in 26 deaths and 12 injuries of various degrees involving both employees of the companies and the third parties.

“This indicates a significant decline in the health and safety performance of the operators during 2020/Q2 when compared with the first quarter of 2020 when 9 deaths and 4 injuries were recorded.

“The Commission, in line with its mandate to ensure safe and reliable electricity services, has commenced enforcement on some of the incidents involving various safety breaches during the quarter,” it stressed.

NIGERIAN TRIBUNE

 

 

 

 

 

International customers failed to remit N2.59bn invoice to market operators ― NERC

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