The Market Operator (MO) department of the Transmission Company of Nigeria (TCN) is requesting one trading currency to apply to every transaction where the electricity market is concerned.
This includes transactions such as tariffs, payment for gas and energy supplied to be denominated in one currency as against the existing practice of paying for gas in dollars and other services in naira, THIS DAY reported.
One trading currency
Media cited a press release, which stated that the request was made during a meeting of the MO’s quarterly activities,which is aimed at developing the electricity market.
Among the attendees was the electricity generation companies (Gencos), distribution companies (Discos), TCN, Nigerian Bulk Electricity Trader (NBET), Bureau for Public Enterprise (BPE) and Nigerian Electricity Regulatory Commission (NERC).
It is reported that the Gencos called for alignment of market payment with the gas payment cycle.
The Gencos also demanded for a payment mechanism for the outstanding N504 billion ($1.2 billion).
Discos on their part, called for implementation of the last tariff review for the end users.
They also called for immediate payment of MDAs outstanding debts in order to improve liquidity in the market as well as a holistic approach of addressing the sector challenges not only the upstream.
Media further reported that the Discos and TCN called for cost-reflective tariff that assumes no borrowing.
However, it was noted that tariff reviews should be based on proper tariff studies taking into consideration all possible impacts.
The statement added: “Discos called for subsidy in the market to support purchasing power of the population, and that government should remember to redeem her earlier promise of the N100 ($0,31) billion subsidy.”
Special electricity courts
On a different note, the Discos also requested for legislative action or support to address cases of electricity theft and delinquent customers through the introduction of special electricity courts, which will have time limit to address disputes and issues of delinquent customers.
“Delinquent customers should be made to pay interest on their outstanding bills”, the Disco stated.