The Central Bank of Nigeria (CBN) has warned would-be beneficiaries of the N600billion power sector intervention fund that the disbursement of the fund would be based on the accountability system of distribution companies (DisCos) which is driven by their performance through revenue remittance.
The apex bank, according to the Nigerian Electricity Regulatory Commission (NERC), has also pledged to support the commission in enforcing actions against any defaulting party.
This was contained in NERC’s sixth meeting with Nigerian Electricity Supply Industry (NESI) stakeholders in Lagos.
“The CBN cautioned that the disbursement of the N600 billion intervention fund is premised on an accountability framework which hinges heavily on the performance of DisCos and should be reflected in improved collection efficiency and revenue remittance. The CBN also reaffirmed its support to the Commission that enforcement action be taken against defaulting Operators,” it read.
NERC, according to the communique, 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,” it added.
Other decisions taken by NERC were among others, to monitor critical feeders in real time in order to check the inconsistencies of energy received and dispatched to consumers by DisCos.
The communique stressed the need to finalise the procurement of Spinning Reserves and the meeting agreed that TCN shall consult with GenCos for the procurement of 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.
“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 document said.
The commission raised concern over verified incidences of load rejection by DisCos and cautioned against this practice, failing which appropriate enforcement action will be taken by the regulator.
Who’s afraid of the T+1 settlement cycle of CSCS?