The average monthly invoiced revenue remittances from privatised electricity distribution companies in Nigeria are still unimpressive, the Operator of the Nigerian Electricity Market (ONEM) known as the Market Operator (MO), has said.
Speaking at a training forum for participants in the industry in Abuja, the acting director of the MO, Ngozi Osumbor, stated that most of the distribution companies were still doing below 50 per cent of their required monthly invoiced remittances.
She stated that the development was irrespective of findings in a study conducted by the MO which discovered that most of the distribution companies were capable of doing more than their assigned monthly remittance thresholds.
She also stated, however, that in addition to a new punitive measure of deducting outstanding balances from new remittances made by distribution companies, the MO was equally looking forward to checkmating poor revenue remittances with the commencement of the Transitional Electricity Market (TEM) which is a contract-based regime.She disclosed that distribution companies will not be guaranteed power supply in the event of indebtedness to the market in the TEM, adding that the market will fully assume all aspects of its contractual character.
“We all know that the market performance so far is not impressive. We are doing less than 50 per cent of our total expectation. I want to quickly say that whereas most of the Discos are performing up to 90 per cent, some are actually performing with a 100 per cent of the amount allocated to them.”