The drop in power generation in April and May can affect the remittances by electricity distribution companies to the Federal Government, the Nigerian Bulk Electricity Trading Plc has said.
The distribution firms make monthly remittances to the Federal Government through the Electricity Market Operator and the bulk trader. The money paid to the market operator is used to settle the power generation firms and the Transmission Company of Nigeria.
On Thursday, the Permanent Secretary, Federal Ministry of Power, Godknows Igali, had stated that the country had lost 1,800 megawatts of electricity in the last one month.
The fall in power generation has led to a severe drop in supply to consumers across the country, a development that has negatively affected the returns of the Discos.
Speaking on the likely impact which the situation would have on the sector, the Managing Director/Chief Executive Officer, NBET, Mr. Rumundaka Wonodi, said remittances by the Discos for the period could drop.
Wonodi spoke on the sidelines of the firm’s second Annual General Meeting in Abuja.
He said, “The transitional electricity market has begun and that means that we are beginning to receive payments from the distribution companies for power supplied and we are making payments to the generation companies.
“Trading has fully begun. We believe compliance should be full for the month of March. February was a different time and the issue about drop in generation could affect April and May.”
On whether there would be penalty against Discos that failed to remit funds, the NBET boss said, “We have not got to when you will bill for those months; the things that happened this month will come in another one and a half months when you do the settlement and until we see the invoicing settlement from the market operator and the response from the distribution companies, we will then know what to do.”
Wonodi noted that the bulk trader was bound to pay the power generation companies and stressed that the Discos must make the necessary remittances in order to pay the Gencos.
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