The Nigerian Bulk Electricity Trading Plc (NBER) has, for the 2021 payment cycle, processed an average of N68 billion naira worth of electricity via the grid, making sure that GENCOS received an average minimum settlement of 85% of generation invoices.
The NBET also said it processed market payment of over N42 billion naira (N42,486,673,723.75 (billion) to generation companies (GENCOS) for the November 2021 Payment Cycle.
This, the firm said in a statement sent to Platforms Africa, is for grid distributed electricity. The payments were made last week to GENCOS for delivered electricity to the National grid during the period.
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It was gathered that the payments were a combination of market receipts and supplementary payments from Distribution Companies (DISCOS) made to NBET. DISCOS and GENCOS payments are based on the electricity market settlement statement.
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 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.
When contacted, the NBET Head of Corporate Communications (Ms. Henrietta Ighomrore) mentioned 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.
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% of generation invoices.
According to the NBET spokesperson, for January – June 2021 settlement cycle, NBET ensured that all GENCOS received payment of 90% – 99% of generation invoices for grid distributed electricity through the NBET Payment Assurance Facility (PAF) and market receipts.
The top performing DISCO for the November 2021 remains Eko Electricity Distribution Company (EKEDC) with a performance rating of 93% of its Minimum Remittance Order (MRO), whilst the least performance for the November 2021 cycle are Abuja Electricity Distribution Company (AEDC) and Kaduna Electricity Distribution Company (KEDCO) with both DISCOS performing below 20% 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.
