The over N60 billion revenue shortfall in the books of power distributors is slowing down the distribution of electricity across the country. According to the Nigerian Electricity Regulatory Commission in its most recent quarterly report released in Abuja, power distributors recorded a revenue shortfall of N64.5bn in the first quarter of this year.
Power distribution companies confirmed in Abuja that the revenue shortfall had persisted, as they also noted that the non-reflective tariff approved by NERC was impacting negatively on their ability to improve the country’s distribution network. NERC stated that financial illiquidity remained the most significant challenge affecting the industry’s sustainability.
The Chief Executive Officer, Association of Nigerian Electricity Distributors, the umbrella body of the Discos, Azu Obiaya, said that the revenue shortfall in the books of the Discos had negatively impacted not just on remittances to the sector, but also on the distribution of electricity. He, however, stated that the Discos were working with the available funds at their disposal to meet the demands of customers, but urged power users to encourage the distributors by paying their bills.
Source: The Punch