Discos remit N291bn to CBN in eight months

In a period of eight months, the Central Bank of Nigeria received payments totaling N291 billion from the eleven energy distribution firms in Nigeria.

According to information received from the Nigerian Bulk Electricity Trading Plc, Discos paid N291 billion of the N526 billion invoice for the electricity they purchased between January and August 2022.

Power generation businesses produced electricity. Nigeria is home to 26 Gencos, some of which include Geregu NIPP, Olurunsogo, Omotosho, Olaoji, Kainji, Shiroro, Egbin, Ughelli Transcorp, Sapele, and Geregu.

Other companies include Rivers NIPP, Trans Amadi NIPP, Omoku NIPP, Ibom NIPP, Olurunsogo NIPP, Omotosho NIPP, Ihovor NIPP, Gbarain NIPP, Mabon Azura NIPP, Shell (Afam VI), and Jebba.

According to a breakdown of the amounts sent out each month, Discos paid N39 billion in January out of a total of N72 billion. They sent N40 billion out of N66 billion in February, and N31 billion out of N65 billion in March.

The electricity distributors made payments of N39 billion out of N64 billion in April, N30 billion out of N63 billion in May, and N33 billion out of N58 billion in June.

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They sent N39 billion out of N72 billion in July and N40 billion out of N66 billion in August. Joy Ogaji, a Genco representative, recently charged the Discos of remitting only 4% of their fees.

When asked why power supply has decreased in the wake of utility companies’ claims that Gencos were providing inadequate supply, Ogaji responded, “Ask the Discos their payment threshold for the power allotted to them. Electricity costs money. What do they think when they take and pay 4% of the total amount? ”

She would not, however, say how much the four percent represented or how much the Discos owed in total.

“That’s impossible. Never in the history of Nigeria has such happened. Even the worst Discos have not made such terrible payments before. August was the last payment circle and the Discos have paid up,” she said.

She said that the payments made by the Discos to the Gencos were 64% in January, 60% in February, 49% in March, 61% in April, 48% in May, 68% in June, 71% in July, and 75% in August. Ogaji had said that the Discos owed N2 trillion to Gencos during the Association of Energy Correspondents’ annual conference in Nigeria in August.

“Gencos are not owed N500bn as accepted by NBET. We are owed N2tn, while we owe suppliers N1tn,” she said.

She continued by saying that the Nigerian Bulk Electricity Trading Plc owed the Gencos enormous amounts of money, which prevented them from providing power.

Sesan Okunade, a metering specialist, told The PUNCH that the failure of the sector was due to the Nigerian Electricity Regulatory Commission’s incapacity to ensure the fulfillment of commitments made by the investors during privatization.

He said, “The problem with the Federal Government and NERC is the poor monitoring of the activities of the Discos to the set terms of the contract during the privatization. This has created a wide gap between the promises made and the successes achieved so far.

Source: punchng.com