The Nigerian Electricity Regulatory Commission (NERC) has revealed that about three of Nigeria’s foreign electricity customers owe the country $18.29 million in electricity bills in 2022.
According to NERC, Togo, Benin, and Niger failed to pay $18.29 million in electricity consumption as electricity exports hit $50.9 million (N23.5 billion) in 2022.
NERC disclosed that the international customers included: Société Béninoise d’Energie Electrique (SBEE), Compagnie Energie Electrique du Togo(CEET), and Niger’s Electricity Generation and Transmission Company NIGELEC.
The regulator’s quarterly report showed that in the fourth quarter of 2022, Transcorp-SBEE, Mainstream-NIGELEC, Paras-SBEE, and Odukpani-CEET received invoices from market operators of $3.44 million, $5.5 million, $3.03 million and $2.02 million respectively.
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Of the total invoices received during the period, Transcorp-SBEE and Mainstream-NIGELEC have remitted $0.93 million and $5.44 million respectively, while Paras-SBEE and Odukpani-CEET have not paid anything to the MO.
In the third quarter, the total amount of invoices received by the companies was USD 11.05 million: Transcorp-SBEE, Mainstream-NIGELEC, and Odukpani-CEET received invoices from MO for USD 1.85 million, USD 5.67 million and USD 1.71 million respectively and paid USD 5.2 million and USD 5.7 million respectively.
However, Paras-SBEE did not send the money to MO based on the $1.92 million invoice.
Also, Transcorp-SBEE and Mainstream-NIGELEC received invoices of $2.42 million and $5.56 million from MO in the second quarter of 2022 and paid $2.42 million and $5.55 million, respectively.
Paras-SBEE and Odukpani-CEET also received bills of US$2.39 million and US$2.03 million respectively from market operators during the period, but the customers did not pay.
During the same period, NBET and MO invoiced Ajaokuta Steel Company for £264.76 million and £66.71 million respectively, but they did not pay the money.
NERC also stated that in the first quarter of 2022, bilateral customers received; Paras-SBEE, Transcorp-SBEE, and Mainstream-NIGERLEC billed MO for $2.72 million, $2.74 million, and $4.61 million respectively, and paid $2.72 million, $2.74 million and $4.52 million respectively.
It explained that Odukpani-CEET failed to pay as it received invoices of $3.42 million from the MO during the period.
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On the performance of the Nigerian Distribution Companies (DisCos) during the period, the report showed that the consolidated bills of the DisCos in 2022 amounted to N826.49 billion.
Out of this amount, disco companies paid a total of N617.71 billion.
A further breakdown showed consolidated bills for DisCos in Q4 2022 at £231.01bn, comprising: Nigerian Bulk Electricity Trading Company (NBET) cost of generation: £188.74bn; market operator (MO) transmission and management services: ₦42.27 billion.
Among these, DisCo paid a total of ₦181.78 billion (₦145.91 billion to NBET, ₦35.87 billion to MO) with an outstanding balance of ₦49.23 billion.
In the third quarter, consolidated bills for Discos amounted to ₦204.84 billion: ₦164.34 billion for generation by the Nigerian Bulk Electricity Trading Company (NBET); Transmission and Management Services by Market Operator (MO): ₦40.5 billion.
It announced that DisCo paid a total of ₦173.55 billion (₦140.67 billion to NBET, ₦32.88 billion to MO) with an outstanding balance of ₦31.29 billion.
NBET1 and MO’s total bills to DisCos in the second quarter of 2022 reached KRW 185.01 billion, broken down as follows: electricity generation costs: ₦149.89 billion; Transmission and Management Services: ₦35.12 billion.
In the above payment, Disco Records handed over $ 126.69 billion (NBET $ 102.35 billion, Mo $ 24.34 billion) and the balance was $ 58.32 billion.
NERC said:
“The combined invoices from NBET (MRO1 adjusted) and MO to DisCos in 2022/Q1 was ₦205.63 billion split as follows: generation costs – ₦164.86 billion; transmission and administrative services – ₦40.77 billion.
‘’Out of this amount, the DisCos collectively remitted a total sum of ₦135.69 billion (₦109.96 billion for NBET and ₦25.73billion for MO) with an outstanding balance of ₦69.94 billion.”
According to NERC, the poor remittances were a direct consequence of DisCos recording higher total technical, commercial, and collection (ATC&C) losses than allowed.
