The Nigeria Electricity Regulatory Commission (NERC) said the international electricity customers of the Nigerian Electricity Supply Industry (NESI) did not pay the $11.16million invoice the Market Operator issued them in the third quarter (Q3) of 2023.
The commission’s Q3 2023 financial report issued on Monday said, “On Cross-border Customers, NERC said in 2023/Q3, none of the four international customers being supplied by GenCos in the NESI made any payment against the cumulative invoice of $11.16 million issued to them by the MO for services rendered in 2023/Q3.”
Nigeria supplies electricity to the Republic of Benin, Niger Republic and Togo.
The report revealed that the companies Nigeria supplies electricity to are Paras – SBEE and Transcorp SBEE which are both Benin- Republic owned, Mainstream – NIGELEC of Niger Republic and Odukpani – CEET of Togo.
According to the report, Paras -SBEE failed to remit $2.42million, Transcorp – SBEE failed to remit $2.62million, Mainstream – NIGELEC defaulted to pay $1.96 million while Odukpani – CEET defaulted in paying $4.16million.
This Day reports that the commission added that similarly, none of the 16 bilateral customers operating in the NESI made any payment against the cumulative invoice of ?2,814.68 million issued to them by the MO for services rendered in 2023/Q33.
NERC further said the special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ?0.58 billion (NBET) and ?0.07 billion (MO) invoices received in 2023/Q3.
“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant ministries.
“A continuation of the non-payment may trigger total disconnection from the grid because of the large accumulation of debts.”
NERC also revealed that owing to absence of a cost reflective tariff, the Nigerian Government subsidized electricity with N204.59 billion in the Third Quarter of 2023 (Q3 2023).
It said: ” It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the Government incurred a subsidy obligation of ?204.59 billion in 2023/Q3 (average of ?68.20 billion per month), which is an increase of ?69.37 billion (+51.30%) compared to the ?135.23 billion (average of ?45.08 billion per month) incurred in 2023/Q2; this increase is largely attributable to the government’s policy to harmonise e change rates.”
NERC explained that the rise in the government’s subsidy obligation meant that in 2 23/Q3, DisCos were only expected to cover 45.00% of the total invoice received from Nigerian Bulk Electricity Trading Company (NBET).
“In 2023/Q3, the MRO-adjusted invoice from NBET to the DisCos was ?167.40 billion, while the total remittance made was ?124.53 billion, which translates to a 74.39% remittance performance,” according to the commission.
The report added that the remittance performance of DisCos to NBET in 2023/Q3 (74.39per cent) is a -24.60pp decrease compared to the 98.99per cent remittance performance recorded in 2023/Q2.