Why FG may disconnect electricity to Togo and Benin Republic

• Togo, Benin Republic and two other bilateral customers could not pay for electricity generated in the first three months of this year
• The Nigerian Electricity Regulatory Commission (NERC) disclosed that the international customers owe about $14.19 million
• The commission asked the Market Operator to invoke the provisions of the market rules to forestall the indiscipline

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Four of Nigeria’s neighbours, including Togo and three other bilateral customers, did not pay for electricity supplied by power generation companies in the first quarter of 2024.

The Market Operator had issued a cumulative invoice of $14.19 million for services rendered in the first quarter of 2024.

NERC decries lack of payment for electricity export to Togo and Benin Credit: Bloomberg/Contributor
Source: Getty Images

Full list of international customers owing Nigeria

The Nigerian Electricity Regulatory Commission (NERC) disclosed this in a recent report.

The foreign companies are Para-SBEE in the Benin Republic, with a debt of $3.15 million; Transcorp-SBEE in Benin, with a total debt of $4.46 million; Mainstream-NIGELEC in Togo, with a debt of $1.21 million in electricity, and Odukpani-CEET in Togo, with a debt of $5.36 million.

The electricity regulator added that the bilateral customers did not make any remittances against the cumulative invoice of N1.86 million issued to them by the Market Operator in the first quarter of 2024.

Payments made by international customers

NERC noted that some bilateral customers made payments during the first quarter for outstanding Market Operator invoices from previous quarters.

According to a Punch report, NERC said international customers paid $5.96 million. The market operator also received N505.71 million from eight bilateral customers as payment for debts incurred before the first quarter of 2024.

The electricity regulator disclosed that it expected the market operator to invoke the provisions of the market rules to forestall market indiscipline exhibited by local and international bilateral customers.

In May 2024, reports emerged that international customers did not remit about $51.26 million to Nigeria for electricity exported from the country to users in 2023.

The Nigerian government disclosed this in an industry report, showing the non-remittances by international consumers.

A breakdown of debts owed by international consumers

The bilateral power consumers could not remit about N7.61 billion to the Nigerian power sector.

NERC described the development as a payment indiscipline that the Market Operator, a subsidiary of TCN responsible for power export from Nigeria, must stop.

It condemned the development, describing it as payment indiscipline that must be curtailed by the Market Operator, an arm of the TCN, the firm in charge of Nigeria’s power exports.

A breakdown of the government’s industry report shows that international consumers did not remit $16.11 million, $11.97 million, $11.16 million, and $12.02 million to Nigeria for electricity exported to them in the first, second, third and fourth quarters of 2023.

FG orders Reduction in electricity supply to 3 African countries

NERC is set to enhance power supply to domestic consumers following its orders, directing the System Operator (SO) to cap supplies to international customers by 6 per cent of domestic supplies.

The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

FG issues new deadline for DisCos to upgrade pre-paid meters

Legit.ng earlier reported that NERC warned electricity distribution companies (DisCos) against defaulting on the July 31 deadline for a pre-paid meter upgrade.

The commission disclosed this in a statement during the second Nigerian Electricity Supply Industry (NESI) stakeholders meeting for 2024.

A previous order by NERCE mandated DisCos to upgrade existing meters to a new specification so that they could continue to accept tokens.

Source: Legit.ng