Market Operators in the Power Sector have reported that Distribution Companies owe them about N165.2 bn. According to the latest data obtained from MO, which is an arm of the Transmission Company of Nigeria, the debt or shortfall, in terms of stipulated remittances to the market, grew by N6.41bn between October and November last year.
The report which was put together by market operator and presented to stakeholders at the recent power sector meeting in Abuja on Friday indicated that the power distributors’ debt rose from N158.8bn in October 2017 to N165.21bn in November.
It was gathered that the shortfall had been piling up since January 2015 when the commencement of the transitional electricity market was declared by the Federal Government.
The Managing Director, Niger Delta Power Holding Company, Chiedu Ugbo who spoke on the development said the inability of the Discos to make appropriate remittances to the market made the Federal Government to intervene in the sector through the provision of N701bn to support Gencos in paying for gas.
“There is a lot of shortfall and what we were receiving in the past after we generated power to the grid was about 30 per cent. In fact, the maximum we have ever received from the market is about 30 per cent of our invoice. That challenge is there.
“But the government, being responsive, came up with the N701bn intervention to ensure that at least we are able to pay for gas. This is because with 30 per cent, we were not paying and couldn’t have been able to pay gas suppliers, for in your invoice as a generation company, gas alone will take about 50 to 55 per cent.”
