NBET Pays Gencos N42bn for Electricity to National Grid

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Peter Uzoho

The Nigerian Bulk Electricity Trading (NBET) Plc has processed payment of over N42 billion to power generation companies (Gencos) for November 2021 payment cycle for grid distributed electricity.

THISDAY gathered that the payment was made last week to Gencos for electricity delivered to the national grid during the period.

The payment was a combination of market receipts and supplementary payments from distribution companies (Discos) made to NBET.

Discos and Gencos payments are based on the electricity market settlement statement.

Market Settlement Statement are issued in arrears by the Market Operator (MO) following a period of 28 days after a cycle.

The MO takes the readings of the various meters via the grid network to determine the quantum of electricity supplied to the grid by each genco into the national pool.

The electricity is then wheeled via the transmission network operated by the Transmission Company of Nigeria (TCN) to the Discos and subsequently to the end-users.

The settlement statement forms the basis of invoicing and processing of payments to the Gencos.

NBET has continued to ensure timely payments to Gencos for energy generated and distributed to end users via the grid despite the average market performance of Discos.

When contacted on the payment, the NBET Head of Corporate Communications, Ms. Henrietta Ighomrore, confirmed that it was made following its internal payment committee meetings and approval by the management.

NBET has continued to fulfill its mandate in ensuring an efficient and effective transactions environment for the bulk purchase and resale of power in the Nigerian Electricity Supply Industry (NESI).

For the 2021 payment cycle, THISDAY learnt that NBET processed an average of N68 billion worth of electricity via the grid, making sure that Gencos received an average minimum settlement of 85 per cent of generation invoices.

According to the NBET spokesperson, for the January – June 2021 settlement cycle, NBET ensured that all Gencos received payment of 90 – 99 per cent of generation invoices for grid distributed electricity through the NBET Payment Assurance Facility (PAF) and market receipts.

The company, however, disclosed that Eko Electricity Distribution Company (EKEDC) remained the top performing Disco for the November 2021 cycle with a performance rating of 93 per cent of its Minimum Remittance Order (MRO).

The least performers for the cycle under review were Abuja Electricity Distribution Company (AEDC) and Kaduna Electricity Distribution Company (KEDCO) with both Discos performing below 20 per cent of the MRO.

The increase, timeliness and consistency in payments to the Gencos ensured stability of the national grid and sustained power generation across the country.

The quantum of power delivered to the grid has been on a steady increase as Gencos can leverage payments to third parties and ensure maintenance of their plants, THISDAY learnt.

With a new license, NBET noted that it was suitably positioned to lead the NESI towards a viable power exchange for the good of the sector.