N600bn Power Sector Fund: CBN Gives Discos Conditions
…….insists on remittance performance as eligibility
The Central Bank of Nigeria (CBN) has said that eligibility for the proposed N600 billion power sector intervention fund disbursement will be based on the accountability system of distribution companies (DisCos), driven by their remittance performance.
Rising from the Nigerian Electricity Regulatory Commission (NERC) sixth meeting with Nigerian Electricity Supply Industry (NESI) stakeholders’ meeting in Lagos, the apex bank also promised to support the Commission by enforcing actions against defaulting discos.
In a communiqué issued after the meeting, NERC said the accountability framework the CBN refers to hinges heavily on the performance of DisCos and should be reflected in improved collection efficiency and revenue remittance.
NERC also resolved to investigate the differences emanating from the reports of the Nigerian Bulk Electricity Trading Company (NBET) and the Market Operator (MO) of the Transmission Company of Nigeria (TCN) over energy received. “NERC shall investigate the discrepancies between energy received as reported by MO and NBET,” the communiqué stated.
NERC further resolved to monitor critical feeders in real time in order to check the inconsistencies of energy received and dispatched to consumers by DisCos. It said the Transmission Company of Nigeria (TCN) shall consult with generation companies for the procurement Spinning Reserves and report back to the Commission within one week.
“The GenCos highlighted the challenges in the market and it was agreed that the Commission shall convene a dedicated meeting with them to discuss their issues with respect to payment for generated capacity, gas supply obligations and applicable exchange rates.
“The Commission raised concern with the abysmal level of the implementation by DisCos of their Customer Enumeration, and Meter Roll-Out targets under the MAP Scheme and cautioned that enforcement action will be taken against non-compliant DisCos,”
NERC regretted that only 26,000 customer meters had been installed under the MAP scheme since its inception on May 1, 2019, emphasising that it is the responsibility of the DisCos to meter their customers and directing that DisCos take appropriate measures, including calling up the Performance Bonds entered into with MAPs if need be, to ensure that metering targets are met.
The Commission condemned verified incidences of load rejection by DisCos, saying that appropriate actions shall be taken against defaulting discos