As controversy continues to trail plan by the Federal Government to escrow the revenue accounts of the Nigeria Electricity Supply Industry, the Market Operator (MO) has threatened sanctions on electricity distribution companies which fail to meet their revenue remittance requirements.
The failure by Discos to make full revenue remittances has been blamed for the current liquidity challenge in the electricity market. This has led to several financial interventions by the government worth about N1 trillion.
The Market Operator is a section of the government owned Transmission Company of Nigeria (TCN).
The Executive Director of MO, Mr. Moshood Saleeman who spoke at a power sector participants and stakeholders meeting in Abuja, yesterday, however disclosed that monthly remittance of the 11 electricity distribution companies is now at 35 per cent.
According to him, “We now experience a marginal increase of 35 per cent in the remittances of the Discos but we are not yet there; it is improving gradually”.
Saleeman explained that penalties will be strictly enforced especially on Market Rule 45 about market payment, stressing that in spite of the three years after privatisation and about two years into the Transition Electricity Market (TEM), the power sector is still experiencing liquidity problem.
He said: “Henceforth, MO will enforce the rules and penalise defaulters – MR 45. From today, we are going to ensure that all the rules are complied with. They include rules about payment to the market, and other essential rules for the market to grow”.
He explained that “the essence of this gathering is for stakeholders to discuss the challenges in electricity market in Nigeria.