Power distribution companies owe service providers, including the Transmission Company of Nigeria, a total of N263bn, our correspondent has learnt.
The service providers in the power sector are the Nigerian Electricity Regulatory Commission, the Nigerian Bulk Electricity Trading Plc, the Transmission Service Provider, the System Operator and the Market Operator.
The TSP, SO and MO are different arms of the Transmission Company of Nigeria, which manages the national grid.
The Market Operator, Mr Edmund Eje, in a video interview posted on the Twitter handle of the TCN, noted that the Transitional Electricity Market started in 2015.
He said, “One of the major conditions for TEM is that the distribution companies will post letters of credit or guarantee to the market operator and the market operator will rest on these letters of credit.
“Assuming a Disco short pays its invoice, the market operator will fall back on this letter of credit. From 2015, the transactions concerning energy and capacity were handed over to the NBET, and then what was left for the market operator, apart from all market administration processes, is services payment.
Source: Punch Newspaper
