N701bn stimulus to slowdown plans to escrow accounts of DisCos

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The 11 electricity distribution companies (Discos) in Nigeria’s electricity market may get a temporary reprieve on the plan by the Nigerian Electricity Regulatory Commission (NERC) and Market Operations (MO) Department of the Transmission Company of Nigeria (TCN) to escrow their accounts and the monthly revenues they get from the market, ThisDay reports.

This is because of the imminent release of the N701 billion financial stimulus the federal government has planned to give the Nigerian Bulk Electricity Trading Plc (NBET) to meet up with payments to electricity generation companies (Gencos) and gas suppliers, and with which it hopes to improve power generation, supplies, and revenue collections by the Discos.

According to the Executive Director of the MO, Mr. Moshood Saleeman, the NERC and MO had perfected plans to begin to enforce all existing rules of the electricity market, including rules on payments and guarantees, but may have to consider the government’s moves to stimulate the operations of the Discos.