September 24, 2018

Power distributors to pay interest on N120bn debt – FG (Punch)

Power distributors to pay interest on N120bn debt – FG (Punch)

Power distribution companies are going to start paying interest on the debt they owe the electricity Market Operator since the commencement of the Transitional Electricity Market in January 2015, the Federal Government has declared.

It was gathered that the government, through the Nigeria Bulk Electricity Trading Company, had started adding up the interest on the over N120bn, which the Discos owe the MO since the past two years.

This is coming as the Discos have demanded that the Federal Government should allow them charge interest on unpaid electricity bills, because the NBET has started compiling interest to be paid by them on debt owed the MO.

On August 18, 2017, The PUNCH had exclusively reported that the indebtedness of the Discos to the MO, in terms of stipulated remittances to the MO, had risen to N120.7bn.

Sources at the NBET, however, stated that the debt had risen beyond the N120bn recorded in August, as many of the firms were still remitting below 40 per cent to the MO. Read more

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