Discos to pay interest on N120bn debt – NBET

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The Federal Government has declared that power distribution companies (Discos) are going to start paying interest on the debt they owe the electricity Market Operator (MO) since the commencement of the Transitional Electricity Market in January 2015, The Punch reports.

It was gathered that the government, through the Nigeria Bulk Electricity Trading Company, (NBET) had started adding up the interest on the over N120bn, which the Discos owed the MO over the past two years. The latest decision by the NBET was announced to stakeholders at the 20th power sector monthly meeting and was captured in the meeting’s minutes that were released to industry operators in preparation for the next gathering.

The MO also informed participants at the event that plans were underway to sanction defaulting Discos. The Discos on their own part demanded that the Federal Government should allow them charge interest on unpaid electricity bills, because the NBET has started compiling interest to be paid by them on debt owed the MO. But the Minister of Power, Works and Housing, Babatunde Fashola, who chaired the meeting, advised the Discos not to charge any interest on the amount owed.