For Discos’ to remit only N44bn out of N147bn to NBET signals financial stress
Recent report of the Nigerian Electricity Regulatory Commission recent (NERC) showing that Nigerian Electricity Distribution Companies (Discos) are indebted to the Nigerian Bulk Electricity Trader (NBET) and Market Operator (MO) to the tune of N103billion after paying only N44bn on a total debt of N147bn has raised serious issue of national urgency.
Analysts who reviewed the report agreed that a number of Discos are apparently facing paucity of fund for operational expenses not to talk of infrastructure upgrade.
The NERC report revealed that Discos were issued an invoice totalling N147billion for energy received from NBET and for the service charge by the Market Operator in the third quarter (Q3) 2017, but only N44billion was settled, creating a shortfall ofN103billion.
NERC report further indicated that liquidity challenge in the industry has continued to manifest within the quarter as evidenced in the Discos’ poor remittances to the NBET.
NERC in the report, gave a comparative analysis of upstream remittance by DisCos relative to the invoices issued by NBET in respect of energy delivered, as measured at the interface point and the MO in respect of administrative services.
The agency said “During the period under review, DisCos were issued an invoice totalling a sum of N147billion for energy received from NBET and for the service charge by the Market Operator, but only N44billion was settled, creating a shortfall ofN103billion.”
However, the Commission said it is currently working on a framework to ensure a fair and equitable distribution of market revenues with the aim of ensuring transparency and fairness in the utilisation of market funds.
Accordingly, it assured regular monitoring of Discos operational and commercial performances of the industry in line with the mandate derived from the Electric Power Sector Reform (EPSR) Act 2005.
NREC report also revealed drop in volume of power distributed during Q3 2017 even as generation stood at 7,568,489MWh to become 3.2 per cent less than what was generated in the second quarter.
For the quarter under review, the industry recorded the peak daily generation of 4,589.70MW on September 6, 2017.
Apart from the momentary rise and fall in peak generations within the period under review, utilisation of the total available generation capacity was also hobbled by factors including inadequate gas supply, transmission bottlenecks and limited distribution networks, the report disclosed.
