NBET owes power producers over N1tn, say Gencos

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Power producers in the country have said they are owed at least N1tn by the Nigerian Bulk Electricity Trading Plc.

The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells through vesting contracts to the distribution companies, which then supply it to the consumers.

Estimates that the trading company has amassed N1tn debt to power producers since 2013 are “extremely conservative,” the Executive Secretary, Association of Power Generation Companies, Dr Joy Ogaji, was quoted by Bloomberg as saying in an interview.“My contract is with NBET to put power on the grid and be paid 100 per cent for it. Whether your off-takers are paying you or not, that shouldn’t be my problem,” Ogaji said.

“If you’re underselling the product, how can you remit 100 per cent?” the Executive Director of the Association of Nigerian Electricity Distributors, Mr Sunday Oduntan, was quoted as saying. The Nigerian Electricity Regulatory Commission on January 5 announced that it would raise consumer prices in April as part of a plan to help the distributors narrow their revenue shortfall.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

 

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