N293bn worth of electricity consumed by Nigerians in 5 months

The Nigerian Bulk Electricity Trading Company (NBE) has revealed that Nigerians consumed N293 billion worth of electricity, even as the distribution companies (DisCos) failed to remit N236.5bn.

This is coming on the heels of a recent move by the Central Bank of Nigeria (CBN) to enforce discipline in the Nigerian Electricity Supply Industry (NESI).

The report also stated that distribution companies (DisCos) failed to remit N236.5 billion despite being compelled by the Nigerian Electricity Regulatory Commission (NERC) to meet a minimum remittance of at least 35 per cent.

The Central Bank of Nigeria had, in a recent statement, warned that commercial banks providing payment guarantees for the DisCos would be held responsible for collections and remittances to NBET and TCN.

In a circular signed by CBN Director of Banking Supervision, Bello Hassan, it stated that “The payment or settlement of all NESI related goods or services shall be made through the Nigerian banking system.

“Consequently, all collections for the payments of NESI regulated goods and services provided by a DisCo shall be paid into a designated account such that collections arising from services rendered by the DisCo shall be paid into an account in the sole name of the DisCo; collections arising from services rendered by a third party/parties on behalf of the DisCo shall be paid into an account in the joint name of the DisCo and the third-party vendor(s).

“All energy and non-energy collections of DisCos, whether cash or cashless, shall only be performed by deposit money banks (DMBs). No entity shall be permitted to collect revenues for DisCos except if that entity is so authorised by a DMB in line with the relevant CBN guidelines for agent banking and agent banking relationships,” the circular stated in part.

The collection and remittance of electricity tariff have remained a challenge, as the 11 DisCos are unable to meet the new minimum payment threshold set by NERC as prerequisite for tariff increases.

In its latest minor review of the Multi-Year Tariff Order (MYTO), the Commission had mandated DisCos to make 100 per cent remittances to market operators; repay CBN loans; and depending on the Disco, remit a stipulated percentage of NBET’s monthly invoices.

But the DisCos had countered NERC, and sought lawmakers’ intervention, insisting that they would need about N8.7billion to comply with the remittance order.

Executive Director, Research and Advocacy at the Association of Nigeria Electricity Distributor (ANED), Sunday Oduntan, had specifically noted that the DisCos would require about N725 million monthly to meet the threshold of the 35 percent remittance level set by NERC.

In the first five month of this year, the DisCos couldn’t remit about N236.5billion of the N293 billion worth of energy supplied to them by the NBET.