NBET pays N42bn to Gencos for November, 2021 – Official

The Nigerian Bulk Electricity Trading (NBET), Tuesday, said it has processed market payments of over N42 billion naira to the Generation Companies (GENCOS) for November 2021 payment cycle, for grid distributed electricity.

These payments were made last week to GENCOS for delivering electricity to the national grid during the period.

The Head of Corporate Communications, NBET, Ms. Henrietta Ighomrore, in a statement in Abuja, on Tuesday, said the payments were made following its internal payment committee meetings and approval by management.

Ighomrore said the payments were a combination of market receipts and supplementary payments from distribution companies (DISCOS) made to NBET.

She said NBET had continued 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.

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

According to the NBET spokesperson, from January to June 2021 settlement cycle, NBET ensured that all GENCOS received payment of between 90 to 99 per cent of generation invoices for grid distributed electricity.

She said this was done through the NBET Payment Assurance Facility (PAF) and market receipts.

Ighomrore said the top performing DISCO

for the month of November 2021 was Eko Electricity Distribution Company (EKEDC) with a performance rating of 93 per cent of its Minimum Remittance Order (MRO).

“Whilst the least performance for the November 2021 cycle were Abuja Electricity Distribution Company (AEDC) and Kaduna Electricity Distribution Company (KEDCO) with both DISCOS performing below 20 per cent of the MRO.

“It is evident that the quantum of power delivered to the grid has been on the increase. The increase, timeliness and consistency in payments to the GENCOS has ensured a steady increase as GENCOS can leverage payments to third parties and ensure maintenance of their plants, “she said.

She said with a new licence, NBET was suitably positioned to lead the NESI toward a viable power exchange for the good of the sector.

Recall that DISCOS and GENCOS payments are based on the electricity market settlement statement.

“Market settlement statement is issued in arrears by the Market Operator (MO) following a period of 28 days after a cycle.

Similarly, 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 company into the national pool.

This 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.