- NBET, TCN to Seal Power Sale Agreement with Niger, Togo
The Nigerian Bulk Electricity Trading (NBET) Plc and the Transmission Company of Nigeria (TCN) have indicated their intentions to finalise and execute power sale agreements (PSA) with two international electricity customers – Société Nigerienne d’Electricité (NIGELEC) and Communauté Electrique du Bénin (CEB).
NBET and TCN have also stated that they want the two international customers to immediately pay up their outstanding electricity debts worth $115.91 million to the Nigerian electricity market.
NIGELEC, according to the NBET and TCN owed $14.45 million, while CEB owed $101.46 million to the market.
However, in a communiqué of the last monthly power sector operators’ meeting held in Abuja, NBET and TCN stated that they had set up a meeting with CEB and NIGELEC, to finalise on the PSA which was been negotiated.
The communiqué also noted that both agencies had agreed on a new sharing formula for the outstanding monies, and which the ministry of power has equally approved.
“The representative of NBET informed the meeting that the report on international customer payments had already been submitted to the ministry with full details of the outstanding amounts owed by CEB and NIGELEC (i.e. $101.46 million and $14.45 million respectively),” said the communique.
“He stated that NBET and TCN jointly forwarded a letter to CEB and NIGELEC requesting them to pay the reconciled amounts. He stated that NBET and TCN were planning to attend a meeting at CEB’s Headquarters in Lome, Togo, to finalise and execute the Power Sale Agreement (PSA) currently being negotiated and to prevail on CEB to immediately effect the outstanding payment at the meeting. He also informed the meeting that NBET and TCN had agreed on a new sharing formula on the outstanding amounts from CEB and NIGELEC which had been presented to the ministry for approval,” the communiqué explained.
Recently, the NBET disclosed that CEB and NIGELEC paid $159,773,116.61 to the power generation companies (Gencos), but that they still owed an outstanding debt of $92,315,986.20 to the Nigerian power market.
NBET informed operators at the June operators’ meeting that NIGELEC (Republic of Niger) and CEB (Republic of Benin) made a total payment of $159,773,116.61 for power supplied and that the payment was duly remitted to the Gencos and service providers.
As part of existing bilateral relations between her neighbouring countries of Togo, Benin Republic and Niger Republic, Nigeria reportedly supplies up to 300 megawatts (MW) of electricity to CEB countries of Togo and Benin, as well as Niger Republic’s NIGELEC.
While the CEB countries have 200MW of power from the supply loop, the balance of 100MW is thus reserved for Niger Republic.