Discos Failed To Remit full Payment Of N519.77bn To NBET In 2021


The electricity distribution companies (Discos) failed to remit the N519.77 billion being the value of the invoice presented to them by the Nigeria Bulk Electricity Trading Company (NBET) that was supposed to cover the first six months of 2021.

The Discos were only able to remit N265.03billion or 51 percent thereby leaving an outstanding ofN254.74billion.however this is considered to be an improvement over the previous years when the companies were able to settle an estimated 30 percent of their invoiced bills

This was contained in a report titled 2021 Power and Infrastructure, Wrap Up/Outlook by Olaniwu Ajayi.

According to the report, the “steady recovery” trend was also visible in the power sector as the DisCos were able to significantly improve their revenue collection capabilities due to the transition to service reflective tariffs which took effect in September 2020 and the National Mass Metering Programme which commenced in December 2020.

“Revenue collection efficiency across the various tariff bands is said to have improved by 70% on average, which has also translated to improved remittance to NBET. “

The report which covers other areas of the power sector said under the Regulations, DisCos are required to continue to be responsible for the metering of the customers within their franchise areas and meet the metering targets set by NERC.

To effectively discharge this obligation, the report said the DisCos are permitted to take advantage of the following metering frameworks and may choose to combine any of the frameworks created by the NERC towards meeting their metering targets: (i) the MAP framework; (ii) the NMMP; (iii) vendor finance; (iv) self-funding by the DisCo; or (v) other efficient external financings for meters.

The cost of meters to the end-user, it stated shall continue to be regulated by NERC and DisCos are not permitted to charge higher than the regulated cost.

“Notably, under the MAP framework, MAPs previously appointed by the DisCos and approved by NERC will continue to operate. However, the DisCos may appoint additional MAPs (provided that such additional MAPs are not certified LMMAs participating in NMMP), to provide metering services, subject to NERC’s approval.”

It stated that NERC’s changes to the pre-existing metering regime – which makes for the concurrent implementation of a number of metering programs – is clearly a step in the right direction as it affords the DisCos the flexibility to adopt any option to close the metering gap in their franchise areas given that every franchise area has its peculiarities.

“Indeed, this may be the much-needed tonic for closing the metering gap since the partial privatisation of the distribution sub-sector of the NESI in 2013. However, it remains to be seen how this new regulatory terrain will be navigated by the relevant stakeholders in the year 2022 and onwards.”

Olusola Bello



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