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How DisCos paid NBET N212bn in six months – Report

Joy Onuorah
Joy Onuorah

Electricity distribution companies otherwise known as DisCos, paid N212 billion of their total invoice to the Nigerian Bulk Electricity Trading Plc, between January and June 2022.

According to the Nigerian Tribune, this is based on a total invoice value of N388 billion and a minimum remittance order of N315 billion.

The report also stated that the Nigerian Electricity Regulatory Commission approved remittance for January was 81.33%, with DisCos payment remittance as related to the MRO accounting for 66.12%.

With the exception of Eko, Ikeja, and Yola, eight discos did not meet the Minimum Remittance Order requirements within the month.

DisCos must collect revenue based on the approved tariff, which is a percentage of the total cost-reflective tariff.

Meanwhile, the approved tariff sets up the Minimum Remittance as a percentage of the total invoice figure that DisCos must pay.

The Minimum Remittance Order is provided by NERC.

This order essentially assigns the responsibility of paying a certain percentage of the monthly invoice from NBET to the DisCos; that is, a DisCo is assigned the responsibility of paying the p percentage of the total DisCo’s invoice issued by NBET.

Discos’ expected overall payment performance based on the Minimum Remittance is 81.21% and 80.94% for February and March, respectively, but overall DisCo payment performance achieved was 60.02% and 48.49%, representing 73.91% and 59.90% of the MRO requirements.

The approved Minimum Remittance in April and May was 81.02% and 81.14%, respectively, while the DisCos’ overall performance was 75.01% and 58.52%.

The Nigerian Bulk Electricity Trading Plc acts as the wholesaler of power purchased from GenCos and distributed to Distribution Companies under the Vesting Contract.

The DisCo-NBET Vesting Contracts require each Disco, as a Buyer, to receive a certain percentage of energy from NBET, which in turn will receive energy from each GenCo under the relevant PPAs.


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