Of the many challenges that have stultified the development of
the Nigerian Electricity Supply Industry (NESI),
illiquidity remains the most significant.
As part of efforts to address this problem, the Nigerian
Electricity Regulatory Commission (NERC) has
exercised its powers under section 17(a) & (b) of the
Multi-Year Tariff Order 2022 (MYTO 2022), adopting
its first Supplementary Order to MYTO 2022 on the Implementation of
Regulatory Net-Offs 2022 (the Net-Off Order).
are specific directives issued by NERC to the Principal
Collection Accounts Settlement Administrator on net-offs (+/-) in a
fixed sum requiring no calculation, applied to an electricity
distribution company's (Disco) minimum
remittance obligations to the Market Operator (MO)
or to the Nigerian Bulk Electricity Trading Company Plc
(NBET) for a specific number of months to
accommodate financial offsets by market participants and/or
amortization of deferred assets, as approved by NERC.
