N701b Intervention: The 10 GenCos that have received N12 billion from NBET
The Nigerian Bulk Electricity Trader (NBET) has confirmed payment of about N12 billion to 10 power generation companies in Nigeria. NBET recently obtained a N701 billion payment guaranty via the Federal Government and through the support of the World Bank.
The corporate communications chief of NBET, Henrietta Ighomroro, provided the following updates.
The Gencos that have so far received payment are as follows;
Kainji, Jebba, Shiroro, Geregu, Olorunshogo, Omotosho, Shell Afam, Opai Agip, Omoku respectively.
Why others are yet to collect
They are yet to complete documentations that will enable them qualify for payments
How did they arrive at the amount to be paid
The Payment Assurance guarantees 80% of GenCos’ invoice, out of which 90% of the 80% is set aside for direct payment to gas suppliers (by NBET), leaving the GenCos with the balance. GenCos can then add the 10% left to the collections received from DisCos via the Market Operators.
Conditions for receiving payment
GenCos must have had a Power Purchase Agreement (PPA) with NBET. A Power Purchase Agreement is a contract between a GenCo and the NBET which contains how power is bought from the GenCOS, transferred and payment is made. About 22 GenCos currently have PPAs with NBET.
Once a GenCo has provided all the requisite documents confirming that power was delivered to the Transmission Company, the qualify for payment.