In the Fourth Quarter of 2019, the 11 electricity Distribution Companies (DisCos) failed to remit N119.46 billion to the Market Operator (MO), The Nation learnt on Friday.
The energy distributors, according to the Nigeria Electricity Regulatory Commission (NERC), which disclosed this on its website, were issued a total invoice of N193.66billion for energy received from the Nigeria Bulk Electricity Trading Company (NBET) and for administrative services by MO.
NERC, in its report on the quarter under review, said: “But only a total of N74.20 billion (i.e. 38.32 per cent) of the invoice was settled as and when due, creating a total deficit of N119.46 billion including tariff shortfall.
“A comparative analysis of market invoice performance by DisCos in 2019/Q4 indicates an average settlement rate per DisCo of 34.24 per cent of the invoice.” Only Abuja and Eko DisCos achieved a settlement rate of 50 per cent of their market invoices during the quarter under review. Although Jos DisCo achieved slight progress as compared to the third quarter, its 19.57 per cent remittance performance was the lowest recorded among the DisCos followed by Yola DisCo 22.52 per cent.”
On revenue collection and efficiency, the NERC said the total revenue collected by 11 DisCos from customers in the third quarter of 2019 stood at N127.14 billion out of the total billing of N183.10 billion.
Following the increase in the billing efficiency recorded in the quarter under review, the report said relative to the preceding quarter, the total revenue collected as a ratio of the total billing by DisCos slightly increased.
NERC noted that the overall efficiency collection by all the DisCos increased to 69.44 per cent in the fourth quarter of 2019, representing a 0.45 per cent point decrease from 68.99 per cent collection efficiency recorded in the previous quarter.
The commission explained that the collection efficiency implies that for every N10.00 worth energy billed to customers by Discos in the third quarter, N3.06 remained unrecovered from customers as when due.
The report said notwithstanding its increase from the preceding quarter, the collection efficiency by the DisCos is still low and has continued to adversely impact the financial liquidity of the industry, which in turn, has led to low investment in NESI.
Source: The Nation