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