Power distribution companies (Discos) are not only indebted to their counterparts in the electricity generation arm of the sector, they also owe service providers a total of N205.51bn.

The service providers in the power sector are the Nigerian Electricity Regulatory Commission, the Nigerian Bulk Electricity Trading Plc, the Transmission Service Provider, the System Operator and the Market Operator. The TSP, SO and MO are different arms of the Transmission Company of Nigeria.

Figures contained in the August 2018 report, presented by the MO to industry operators at the recent power sector stakeholders’ meeting, showed that the indebtedness of the Discos to service providers had been accumulating since the commencement of the Transitional Electricity Market which became operational on January 1, 2015.

The MO, in its report, which was obtained from the Federal Ministry of Power, Works and Housing in Abuja on Friday, stated that the N205.51bn was the total indebtedness of the Discos to NERC, NBET and the TCN, from January 2015 to June 2018. A further analysis of the report showed that all of the 11 Discos were indebted to the service providers.

Source: The Punch