A 2015 year-end appraisal report conducted to determine the revenue gap in Nigeria’s privatised electricity sector by the Nigerian Electricity Regulatory Commission (NERC) has identified that there was a conspicuous shortfall in the industry’s bottom-line in the year that just ended, ThisDay reports.

The report disclosed that as at the close of 2015, the revenue gap in the Nigerian Electricity Supply Industry (NESI) value chain amounted to N187 billion for 2015 alone. According to the report, every player in the electricity value chain: the Transmission Company of Nigeria (TCN); Discos; institutional services providers, electricity Generating Companies (Gencos); and gas suppliers were affected by the gap.

It identified several factors such as the decision of the NERC in mid-2015 to freeze the tariff of electricity distribution companies (Discos) to customers under the residential-2 (R2) class; collection loss removal; and non-adherence to sanctity of Discos’ performance agreement with the Bureau of Public Enterprises (BPE), as the main reasons for the gap.