The Republics of Niger, Benin and Togo have remitted a total of N2.04 billion in the first quarter of 2020, as their outstanding electricity bills to the Nigerian Electricity Regulatory Commission, NERC, the Commission’s quarterly report has disclosed.
According to the report however, Ajaokuta Steel Co. Ltd and its environs failed to make any payment in respect of invoices issued by the Nigerian Bulk Electricity Trading Plc to the tune of N0.27 billion and N0.05 billion during the quarter.
It further disclosed that a total of N4.05 billion ($13.22m) invoices were issued by the MO to international customers, including Societe Nigerienne d’electricite (NIGELEC), Societe Beninoise d’Energie Electrique (SBEE) and Compagnie Energie Electrique du Togo (CEET).
The commission stated that during the quarter, NIGELEC made a payment of ₦1.61 billion ($5.27m) as part of its outstanding bills for the energy received from NBET and services rendered by the market operator.
“Similarly, SBEE paid ₦0.43 billion ($1.39m) in respect of services received from the market operator,” the commission added.
It stated that it was noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC), had partly contributed to liquidity challenges being experienced in the industry.
It, however stated that the settlement ratio to the expected Minimum Remittance Thresholds, having adjusted for tariff shortfall, indicated that power distribution companies needed to improve on their performance.
“Whereas Discos were expected to make a market remittance of 46.09 per cent during 2020/Q1, only 32.53 per cent settlement rate was achieved within the timeframe provided for market settlement in the Market Rules,” the commission stated.
It said the Discos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT and called on the power firms to improve on their performances.
