Reps probe NBET over allegations of fraud

By Obas Esiedesa – Abuja

The Nigerian Bulk Electricity Trading Plc on Tuesday disclosed that it remitted N42 billion to power generation companies (GenCos) for electricity supplied to the national grid in November 2021.

The bulk trader in a statement in Abuja explained that the payments were a combination of market receipts and supplementary payments from Electricity Distribution Companies (DisCos) made to NBET.

NBET said it processed market payment of N42,486,673,723.75  to the power generators for the November 2021 Payment Cycle for grid distributed electricity.

It stated that these payments were made last week to GenCos for delivered electricity to the National grid during the period.

“DisCos and GenCos payments are based on the electricity market settlement”, it added.

NBET explained that “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 generation companies into the national pool, which is then wheeled via the transmission network to the distribution companies and subsequently to the end-users.

“The settlement statement forms the basis of invoicing and processing of payments to the GenCos”.

NBET said it has continued to ensure “timely payments to generating companies for energy generated and distributed to end users via the grid despite the average market performance of DisCos”.

NBET Head of Corporate Communications, Ms. Henrietta Ighomrore, in the statement, added that the payments were made following its internal payment committee meetings and approval by management.

“NBET continues 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.

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“For the 2021 payment cycle, NBET processed an average of N68 billion worth of electricity via the grid, making sure that GenCos received an average minimum settlement of 85% of generation invoices”, she said.

According to her, for 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. 

NBET named Eko Electricity Distribution Company (EKEDC) as the best performing DisCo with a rating of 93 per cent of its Minimum Remittance Order (MRO) for November, 2021 while Abuja Electricity Distribution Company (AEDC) and Kaduna Electricity Distribution Company (KEDCO) were named as the least performing companies with both remitting below 20 per cent of the MRO.

“The increase, timeliness and consistency in payments to the GENCOS has ensured stability of the national grid and sustained power generation across the country. It is evident that 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. 

“With a new license, NBET is suitably positioned to lead the NESI towards a viable power exchange for the good of the sector”, Ms Ighomrore added.

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