NBET: Discos Owe N430bn in 11 Months

  • NBET: Discos Owe N430bn in 11 Months

Power distribution companies (Discos) are owing N429.87 billion, according to the Nigerian Bulk Eectricity Trading Plc (NBET).

Discos total invoice between January and November 2019 stood at N572.17 billion while mere N142.31 billion was paid to the NBET despite Federal Government mandating discos’ remit, they continued to lag behind in payment.

A breakdown shows the eleven power distributing companies received a total invoice of N55.78 billion in January; N51 billion in February; N54.53 billion in March; N51.64 billion in April; N53.96 billion in May; N47.58 billion in June; N51.68 billion in July, and N53.01 billion in August.

While September, October and November invoices were N49.39 billion, N50.1 billion and N53.5 billion, respectively.

However, payment made were N12.48 billion in January; N10.07 billion in February; N13.17 billion in March (including N4.18 billion February late payment); N12.28 billion in April; N14.67 billion in May (including N2.56 billion April late payment); N8.39 billion in June; N11.05 billion in July, and N14.93 billion in August (including N2.63 billion July late payment).

In September they paid N15.55 billion, N15.87 billion in October and N13.85 billion in November.

The Nigerian Electricity Regulatory Commission, in its recent order for the year 2020 titled ‘Minor Review of Multi Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 for the 11 Discos’ said: “are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall.”

The commission, in its latest quarterly report, said the financial viability of the Nigerian electricity supply industry remained a major challenge threatening its sustainability.

It said, “The liquidity challenge is partly due to the non-implementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft and consumers’ apathy to payments under the widely prevailing practice of estimated billing.

“The severity of the liquidity challenge in the Nigerian electricity supply industry was reflected in the less than 50 per cent settlement rate of the energy invoice issued by the Nigerian Bulk Electricity Trading Plc and Market Operator to each of the Discos as well as the non-payment by the special and international customers.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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