Home Electricity DISCOS only settled invoices of  N51.2bn out of N163.1bn- NERC

DISCOS only settled invoices of  N51.2bn out of N163.1bn- NERC

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The Nigerian Electricity Regulatory Commission (NERC) has said that the eleven Electricity Distribution Companies (DisCos) remitted only N51.2billion of electricity invoice out of the total N163.1 billion they received in the first quarter of 2018.

NERC in its 2018 first quarter report published on its website indicated that liquidity challenges in Nigeria Electricity Supply Industry (NESI) had continued to manifest in the first quarter of 2018.

The commission said was due to level of remittance of market invoice.

NERC said DisCos remittances were invoices received for energy purchased from the Nigeria Bulk Electricity Trader (NBET) and those received for administrative services from the Market Operator (MO).

“In the period under review, whereas DisCos were issued a total invoice of N163.1billion for energy, only N51.2billion of the invoice was settled, creating a total deficit of N112.0billion, “ it said.

NERC said similar to fourth quarter remittances in  2017 , none of the DisCos  remitted  up to  half  of  their  market invoices in  the first quarter of 2018.

According to NERC, only Eko and Ikeja DisCos settled up to 45 per cent of their market invoices, while all other DisCos settled below 40 per cent of their invoices in the quarter under review.

NERC, however, said overall market remittance improved from 24 percent in fourth quarter of 2017 to 31 per cent in first quarter of 2018, but noted that the remittance performance remained significantly low.

“Similar to the fourth quarter of 2017, MO received 40 per cent remittance of the invoice issued for service charge during the first quarter of 2018.

“Although there was no noticeable change in the overall revenue collection efficiency of the DisCos.

“There was 7.3 percent increase in total combined remittance to NBET and MO in the first quarter of 2018 relative to the last quarter of 2017,“NERC said

NERC said DisCos settled about 31.4 percent of its first quarter’s market invoice as against 24.1 percent settlement performance recorded in the last quarter of 2017.

According to NERC, Eko DisCo had the highest remittance of 45 per cent, indicating a 2 percent drop from its remittance performance in the preceding quarter.

It said Jos and Kaduna had lowest performance of 11 percent and 12 percent respectively, indicating increases of 2 percent and 1 percent respectively from their performance in preceding quarter.

On revenue and collection efficiency, NERC also revealed that the total collection of revenue by DisCos from their customers in the first quarter of 2018 stood at N106.6billion, out of the total bill of N171.2billion.

This, NERC noted, represents 6 percent increase when compared to N101billion collection in the last quarter of 2017.

It said the slight increase in revenue collection in the quarter under review was attributed to the increase in energy billed.

According to NERC, average collection efficiency in the first quarter of 2018 was 58 percent, same as recorded in the fourth quarter of 2017.

It said on the average, the revenue collection efficiency indicated that for every N10 billed to customers, N4.20 remained unrecovered as at when due.

It noted that the overall, DisCos collection efficiency remained abysmally poor as just a little above the half of the revenue billed was recovered as at when due.

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