DisCos through its umbrella body ANED, has asked that NERC focuses on the recovery of N435.7bn by electricity operators in the country rather than focusing on their activities. Discos said there was a need to tackle the widening tariff gap that was hindering the Discos from performing optimally due to the freezing of residential tariffs (R2) in 2015 for 18 months, removal of collection losses in 2015 and non-implementation of five tariff reviews.
ANED CEO, Azu Obiaya, while speaking in Abuja on Wednesday, said NERC ought to be concerned about cost under-recovery and other burning regulatory issues rather than dissipate energy on the advocacy work of the association which is constitutionally binding. According to ANED, it represents the Discos with a principal mandate of advocacy to protect the interests of the member companies, directly and indirectly, the incomes of a 22,000-employee workforce.
NERC PUTS POWER SECTOR Q1 SHORTFALL AT N112BN – This Day
According to NERC, the total financial shortfall in the Nigerian electricity market within the first quarter of 2018 is N112 bn. In its first quarter (Q1) 2018 operational report of the sector, NERC said out of the total sum of N163.1bn invoice for energy that NBET issued to the Discos in the market, as well as for service charged by the TCN, only N51.2bn representing 31.4% of the invoice as settled by Discos. This it said is responsible for the huge shortfall of N112bn in the market within the period.
The Q1 report explained that: “This serious liquidity challenge is partly attributed to non-cost-reflective tariffs, and high technical and commercial losses aggravated by consumers’ apathy to payment arising from estimated billing and poor quality of supply in most load centers. Out of the N171.1bn billed to customers in the first quarter of 2018, only N106.6bn was recovered, representing 62.3% collection efficiency. Therefore, out of every N10 worth of electricity sold during the quarter under review, N3.8 is uncollected,” it added.