FG paid just N36bn for electricity subsidy in three months — NERC

The Nigerian Electricity Regulation Commission (NERC) has said the FG paid the sum of N36billion to subsidise electricity consumption in the first quarter of 2023.

According to DailyTrust, NERC said in its quarterly report that the money amounted to the payment of N12 billion monthly paid to the Nigerian Bulk Electricity Trading (NBET). Charged with the collection of revenues due to generation companies and the Transmission Company of Nigeria (TCN) from the DisCos, the sum of N141.5billion was paid to the NBET from the N209.2billion invoice given to the DisCos.

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NERC said the government intervention was made due to the “absence of cost-reflective tariffs, the government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding.

This funding is applied to the NBET invoices that are to be paid by DisCos.