NBET’s payment shortfall to GenCos hits N865bn in 21 months ― Report
• as DisCos fail to remit N870billion
The Nigerian Bulk Electricity Trading Plc (NBET) payment shortfall to the electricity Generation Companies (GenCos) between January 2019 and September 2020 is N865billion, Nigeria Electricity Supply Industry (NESI) data has revealed.
Also, the data states that the eleven electricity Distribution Companies (DisCos) failed to remit a total of N870 billion within the period.
A key operational and financial data obtained from the official website of the Nigerian Electricity Regulatory Commission (NERC) disclosed that in 2019, the total sum of the invoice from 25 GenCos to NBET was an approximated N675billon from which only N174.3billion was paid, leaving a shortfall of N496.65billion.
Similarly in 2020, the total invoice received between January and September was put at N545billion from which N176billion was paid, leaving a shortfall of N387billion.
A breakdown of the invoice showed that for the 21 months, Azura Edo thermal plant had the highest sum of N230billion followed by Egbin power plant with N149billion. However, both plants only received N68.5billion and N40.68billion payments respectively.
ALSO READ: Momoh’s death loss to community ― Buhari
The overall data showed that none of the GenCos paid up to 50 per cent of their invoices, which has further widened the shortfall.
Also, the payment assurance(PA) paid to GenCos within the period is put at N54billion and only paid for January and February 2020.
While other GenCos received payment assurance, the data showed that no payment was made to Azura Edo in January except for February, when it received a sum of N14.1billion. No payments were made to Shiroro hydro within the two months.
On the other hand, the data revealed that DisCos failed to remit a total of N870billion to NBET within the period under review.
It shows that in 21 months, over N1trillion invoice was given to DisCos out of which only N303billion was remitted to NBET.
Ikeja, Eko and Abuja DisCos recorded the highest remittances with N62billion, N55billion and N56.58billion respectively.
But, DisCos remittances to Market Operators (MO) between January 2019 and September 2020 was N174billion that is; N173.64billion and N266.71billion for 2020 and 2019 respectively, out of an accrued invoice of N1.3trillion.
The total market shortfall for the period however is N900billion.
In terms of commercial performance, the key performance data for 2019 states that although the DisCos had 68 per cent collection efficiency, the remittance performance was 36 per cent.
For 2020, the collection efficiency was 67 per cent while the remittance performance was 29 per cent.
The data also revealed that as of September 2020, 11,841,819 electricity customers were registered by all the DisCos with only 4,425,628 metered.
From the breakdown, Ibadan, Abuja, Ikeja and Benin DisCos were the highest with 813,160, 714,547, 585,327, 559,880 figures respectively.
The metering gap, however, as of September 2020, was put at 7,416,191.
NBET’s payment shortfall to GenCos hits N865bn in 21 months