Discos expected to repay N34.05bn CBN loan this year

Electricity distribution companies are expected to repay N34.05bn loan disbursed under the Central Bank of Nigeria and Nigeria Electricity Market Stabilisation Facility programme this year.

The Nigerian Electricity Regulatory Commission disclosed this in its 2016-2018 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for Year 2019 for the Discos.

In November 2014, the CBN, the Ministry of Petroleum Resources, Ministry of Power and NERC signed a memorandum of understanding on the CBN-Nigeria Electricity Market Stabilisation Facility programme, with N213bn earmarked for disbursement through deposit money banks.

The facility was set up to address shortfalls in power sector revenue.

The regulator said it had confirmed N1.15tn as the tariff shortfall suffered by the 11 Discos from 2015 to 2018.

It said the Discos would be availed the opportunity to earn their revenue requirements only upon fully meeting the payment obligations including the repayment of the CBN-NEMS facility and 100 per cent settlement of the MO’s invoice based on the tariffs applied by the MO in determining respective invoices prior to the order.

“Effectively, this order places a freeze on the tariffs of the TCN and other administrative charges covering NBET and the commission throughout 2019 at the rates applied in generating the MO invoices for the period of January – May 2019,” NERC said.

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