Electricity Export: Togo, Niger, Benin Republic Owe Nigeria $18.29 Million

July 22, 2023
Electricity Export: Togo, Niger, Benin Republic Owes Nigeria $18.29 Million
Electricity Export: Togo, Niger, Benin Republic Owes Nigeria $18.29 Million

The Nigerian Electricity Regulatory Commission (NERC) reveals in its quarterly reports that  it exported a total N23.5 billion ($50.9 million)  of electricity, just as its international customers  – Togo, Benin and Niger – failed to remit $18.29 million in 2022.

The debt amount ($18.29 million) represents the value of  electricity supplied to the three neigbouring countries  as electricity export in 2022 alone.

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The debtor institutions in the three countries are the  Société Béninoise d’Energie Electrique (SBEE) of Benin Republic, Compagnie Energie Electrique du Togo (CEET) and NIGELEC- electric power generation and transmission utility in Niger.

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Also,  Transcorp-SBEE, Mainstream-NIGELEC, Paras-SBEE and Odukpani-CEET got invoices of $3.44 million, $5.50 million, $3.03 million and $2.02 million respectively from the market operators in the fourth quarter, according to the NERC Report. While Transcorp-SBEE and Mainstream-NIGELEC made remittances of $0.93 million and $5.44 million respectively, the MO did not receive any remittance from   Paras-SBEE and Odukpani-CEET.

A total invoice of $11.05 million was received by the companies in the third quarter as follows; Transcorp-SBEE, Mainstream-NIGELEC and Odukpani-CEET received $1.85 million, $5.67 million and $1.71 million respectively from MO  as invoices and made remittances of $1.20 million, $5.55 million and $1.67 million respectively.

No remittance was made by Paras-SBEE against an invoice of $1.92 million.

For the second quarter of 2022, Transcorp-SBEE and Mainstream-NIGELEC got  invoices of $2.42 million and $5.56 million from MO and remitted $2.42 million and $5.55 million respectively.

Similarly, although Paras-SBEE and Odukpani-CEET also received invoices of $2.39 million and $2.03 million respectively from  market operators during the period under review, no payment was made by them.

It was also revealed that NBET and MO invoiced Ajaokuta Steel Company with  ₦264.76 million and ₦66.71 million respectively but no remittance was made.

NERC also stated that in the first quarter of 2022, bilateral customers; Paras-SBEE, Transcorp-SBEE, and Mainstream-NIGERLEC were invoiced  $2.72 million, $2.74 million and $4.61 million by MO, with each remitting $2.72 million , $2.74 million, and $4.52 million respectively.

No payment was made by Odukpani-CEET during the period, even as it received invoice of $3.42 million from MO.

The NERC Report also showed the performance of DisCos in Nigeria during the period. It indicates that the combined invoices issued to DisCos in 2022 was N826.49 billion out of which the DisCos collectively remitted  N617.71 billion.

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The icombined invoices issued to the DisCos in 2022/Q4 was ₦231.01 billion consisting of: generation costs from the Nigerian Bulk Electricity Trading Company (NBET): ₦188.74 billion; transmission and administrative services from the Market Operator (MO): ₦42.27 billion.

From this amount, the DisCos collectively remitted a total sum of ₦181.78 billion (₦145.91 billion for NBET and ₦35.87 billion for MO) with an outstanding balance of ₦49.23 billion.

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In third quarter, the combined invoices issued to the DisCos was ₦204.84 billion split as follows: generation costs from the Nigerian Bulk Electricity Trading Company (NBET) ₦164.34 billion; transmission and administrative services from the Market Operator (MO) : ₦40.50 billion.

Out of this amount, the DisCos collectively remitted a total sum of ₦173.55 billion (₦140.67 billion for NBET and ₦32.88billion for MO) with an outstanding balance of ₦31.29 billion.

Also, the combined invoices from NBET1 and MO to DisCos in 2022/Q2 was ₦185.01 billion split as follows: generation costs: N149.89 billion; transmission and administrative services: ₦35.12 billion.

Out of this amount, the DisCos collectively remitted a total sum of ₦126.69 billion (₦102.35 billion for NBET and ₦24.34 billion for MO) with an outstanding balance of ₦58.32 billion.

“The combined invoices from NBET (MRO1 adjusted) and MO to DisCos in 2022/Q1 was ₦205.63 billion split as follows: generation costs – ₦164.86 billion; transmission and administrative services – ₦40.77 billion.

‘’Out of this amount, the DisCos collectively remitted a total sum of ₦135.69 billion (₦109.96 billion for NBET and ₦25.73billion for MO) with an outstanding balance of ₦69.94 billion,’’ NERC stated.

Poor remittance, according to NERC is a direct consequence of the DisCos recording higher than allowed aggregate technical, commercial and collection (ATC&C) losses.

PBA Reporter
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