The Federal Government had in 2014 announced the effective date for the commencement of all contractual obligations in the Nigerian electricity market as January 1, 2015, and stated that TEM would commence the same day.
It explained that the main focus of TEM would be the consummation of all contractual obligations as stipulated in the market rules, adding that the declaration was an attempt to make the market more mature and robust.
A further analysis of the August 2017 report showed the individual shortfall in the amount yet to be remitted by each of the 11 distribution companies since the commencement of TEM up to June 2017.
It outlined the shortfall in remittances of the Abuja, Benin, Eko, Enugu, Ibadan and Ikeja Discos as N17.3bn, N8.6bn, N3.5bn, N15.9bn, N13.3bn and N13.7bn, respectively.
Others are Jos, Kaduna, Kano, Port Harcourt and Yola Discos, with the shortfall in their remittances to the market put at N9.5bn, N13bn, N10.8bn, N13.1bn and N1.8bn, respectively.
Power distribution companies are the primary revenue collection arm of the sector and their failure in remitting what is required of them to the MO and Nigerian Bulk Electricity Trading Plc has been impacting the industry adversely since it was privatised, according to operators in the business.
But the power distribution companies on several occasions had defended why they often defaulted in meeting up with remittances to the MO and NBET.