Gen. Biz, Government, NDPHC, NERC, Regulation, TCN

CBN to Resolve N27bn Debt to NIPP

Posted: July 26, 2015 at 1:58 pm   /   by   /   comments (0)

The Niger Delta Power Holding Company of Nigeria, NDPHC, managers of the National Integrated Power Projects, NIPP, owed N57bn for electricity produced and supplied into the national grid are on the way to get paid the portion of the debt incurred post privatization of the national power assets in November 2013, which stands at N27bn.

Information made available to Energy Business Digest indicates that the management of the Nigerian Electricity Regulatory Commission (NERC) has been having series of round- table meetings with all the parties involved with the aim of resolving the matter and averting any untoward development in the power sector.

OlotuThe outcome of the meetings is that NERC has written the Central Bank of Nigeria to offset the portion of the debt, N27bn, incurred after the privatization of the power assets in November 2013.

The balance of the debt, N30bn, is considered as legacy debt incurred before the power asset privatization and as such would be offset by the Nigerian Electricity Liabilities Management Company (NELMCO), based on the laws that set it up.

This debt issue has been a back and forth argument between the managements of NDPHC and Transmission Company of Nigeria, TCN, as to who was actually owing the debt. NDPHC said it was TCN through its Market Operations subunit, while TCN denied owing the debt, describing its Market Operations unit’s role only as the market administrator and the debt as a market debt arising from the inability of the Electricity Distribution companies to make 100% settlement of their obligations.

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