The 2018 first quarter report released last week by NERC has said the liquidity challenges rocking the power sector sector remains undoubted. The report released showed that a total deficit of 112.0 billion was created during the period. The report also revealed that aside from the liquidity challenges in the power sector, there are a number of factors affecting the growth of the power sector like inefficiency in revenue collection, inappropriate remittance of revenue collected, loses attributed to technical, commercial and collection otherwise known as ATC & C Losses.
According to the report, the average ATC & C for all the Discos in the first quarter of 2018 declined by 1% from 56% recorded during the last quarter of 2017. “The ATC & C Losses reflect low investments in distribution network and pose a liquidity challenge in the industry.” The report further explained the impact of this in the industry thus, “The implication of ATC & C Losses in the first quarter of 2018 is that, as mush as 5.50 in every 10 worth of every energy received by the Discos, was either unaccounted for or uncovered, due to a combination of energy theft, inefficient distribution network, and low willingness to pay by customers.
NERC has said it is developing a framework to help militate the losses attributed to Discos’ poor network. The framework would create a platform where actual investments by the Discos would be verified, evaluated and compared with the proposed investments that were not eventually executed by the Discos. This NERC says would help Discos improve commitment to their network upgrade and reduce technical loss.