Monday 23rd October, 2017
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Discos face sanctions over revenue remittance - MO

Discos face sanctions over revenue remittance - MO

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.

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