The Nigerian Electricity Regulatory Commission has said power generation companies received N81.14bn as payment assurance from the Nigeria Electricity Bulk Trading Plc in 2020.
NERC disclosed this in its latest Key Operational and Financial Data of the Nigerian Electricity Supply Industry: 2019-2020.
NBET disburses payment assurance to power generators to enable the Gencos to meet their financial obligations to gas and equipment suppliers, banks and other partners.
NBET buys bulk power from Gencos and sells the same to electricity distributors, who in turn distribute the commodity to end users at a bill approved by NERC.
In the past years, power distributors have failed to make full payments for the electricity received from Gencos through NBET, making it difficult for the bulk trader to pay the required sum to the generators.
The payment assurance was then approved by the government to help cushion the shortfall in revenue incurred by Gencos.
The power generators also stated that NBET’s indebtedness to electricity producers was now over N1tn.
In its latest operational and financial data for the NESI, the power sector regulator stated that the N80.14bn was paid to 24 power generation companies out of the 25 Gencos that supplied electricity to the national grid during the review period.
Only Azura Edo Power company, a gas-fired thermal electricity plant, did not get the payment assurance last year, which, according to industry operators, was due to its operational agreements.
Analysis of Assurances Received
Further analysis of data in the NERC report showed that Egbin gas/steam power generation plant received the highest payment assurance of N16.49bn last year.
On the other hand, Sapele 2 (NIPP) gas-fired thermal Genco got the least payment assurance of N114.94m in 2020.
Afam, Alaoji NIPP, Afam VI (Shell), Calabar (Odukpami), Delta, Gbarain NIPP and Geregu power generation companies received N2.44bn, N2.31bn, N2.62bn, N6.55bn, N7.33bn, N779.21m and N6.75bn respectively.
Also, Geregu NIPP, Ibom Power, Ihovbor NIPP, Jebba, Kainji, Okpai, Olorunsogo 1 and Olorunsogo 2 NIPP got N2.58bn, N171.66m, N216.22m, N5.21bn, N4.31bn, N2.43bn, N3.56bn and N240.13m respectively.
For Omoku, Omotosho 1, Omotosho 2 (NIPP) and Rivers IPP Gencos, NBET paid them N1.87bn, N3.73bn, N1.47bn and N3.03bn respectively in 2020.
The NERC data further showed that Sapele gas/steam thermal power generation plant, Shiroro Hydro and Trans Amadi gas plant received N775.59m, N5.08bn and N1.09bn respectively during the period under review.