NBET confirms payment of N12bn to 10 power generation companies

The Nigerian Bulk Electricity Trader (NBET) has confirmed payment of about N12 billion to 10 power generation companies in Nigeria, National Daily has gathered

According to the Corporate Communications Chief of NBET, Henrietta Ighomroro, Kainji, Jebba, Shiroro, Geregu, Olorunshogo, Omotosho, Shell Afam, Opai Agip, Omoku have received the fund from the N701bn payment recently obtained from World Bank.

National Daily gathered that the Payment Assurance guarantees 80% of  GenCos’ invoice, out of which 90% of the 80% is set aside for direct payment to gas suppliers (by NBET), leaving the GenCos with the balance. GenCos can then add the 10% left to the collections received from DisCos via the Market Operators.

It was also gathered that for any power generation company to benefit from the fund, it must have had a Power Purchase Agreement (PPA) with NBET. A Power Purchase Agreement is a contract between a GenCo and the NBET which contains how power is bought from the GenCOS, transferred and payment is made. About 22 GenCos currently have PPAs with NBET.

Once a GenCo has provided all the requisite documents confirming that power was delivered to the Transmission Company, it qualify for payment.