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Disco Owed N1.15 trillion in Power Supply Tariff Shortfall –NERC

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  • Disco Owed N1.15 trillion in Power Supply Tariff Shortfall –NERC

The Nigerian Electricity Regulation Commission (NERC) has revealed that 11 power distribution companies across the country are owed a total of N1.15 trillion by electricity consumers in the space of four years; 2015 to 2018.

NERC revealed this in a document published on its website titled, ‘2016-2018 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for Year 2019 for the Discos’.

The commission also urged the Discos to disconnect electricity supply to any Ministry Department and Agency (MDA) of government that refuses to pay for power consumed, adding that it is mandatory for Discos to assign them meters of their choice.

It said “All discos reserve the right to disconnect any MDAs defaulting in the payment for electricity in line with the Regulation on Connection and Disconnection Procedures for Electricity Services”.

The commission, however, acknowledged that the rise in debt with the period under review was as a result of its failure to review and approve the right tariffs for the Discos; a decision it made based on orders by the Federal Government. It explained that the reviews, meant to be done periodically, are in two phrases; minor and major phrases. At both stages, economic determinants necessary for power generation and supply such as such price of gas and exchange rates, are reviewed and that a disregard of the reviews would affect the Discos as they would supply power on terms that were not workable.

According to the commission, Port Harcourt Disco suffered a loss of N104.31 billion in shortfall while Abuja Disco recorded N102.22 billion.

Also, Kano Disco recorded a shortfall of N97.82billion, Enugu recorded, N95.64billion and Jos, N88.36billion.

The largest shortfalls were recorded by Ibadan Disco with a shortfall of N161.88 billion, followed by Ikeja Electricity Distribution Company with N124.17 billion, Benin Disco at N155.35 billion and Kaduna Electricity Distribution Company at N144.54 billion.

The lowest shortfall was recorded by Yola Distribution Company with a shortfall of N51.63 billion. The Yola Disco was taken over by the Federal Government in July 2015 after the exit of key investors following insecurity challenges in the North-East Region.

According to NERC, in accordance with the Power Sector Recovery Plan (PSRP) approved by the Federal Government, all accrued liabilities in Discos’ financial records arising from tariff shortfalls would be transferred off the balance sheet and fully settled under the financing plan of the PSRP initiative.

“All Discos with excess of tariff shortfalls over market shortfalls shall be compensated accordingly for the differences. All interest payable by Discos on unpaid invoices issued by the NBET and the MO and attributable to tariff shortfalls shall be transferred off the balance sheet of the utilities, ” It said.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Senate Summons NICON, AIICO, Others Over N17.4bn Pension Remittances

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The Senate Public Accounts Committee has summoned the management of the NICON Insurance Plc, AIICO Insurance and other insurance companies over their alleged failure to remit N17.4bn pension fund to the Pension Transitional Arrangement Directorate.

The Senate hinged the summon on the 2016 report of the Auditor-General for the Federation which unraveled the alleged non-remittance of N17.4bn pension fund to PTAD.

Appearing before the panel on Monday, the Executive Secretary of PTAD, Dr Chioma Ejikeme, informed the lawmakers that PTAD took over the assets and liabilities of the defunct pension offices without a formal handing over.

She said, “On taking over, the directorate wrote all underwriters to make returns and remit whatever amount that was in their custody into a CBN dedicated account.

“Some of the underwriters responded to the request while some did not.

“The bank certificate of balances, accounting statements, three years financial statements and policy files requested by the federal auditor were not handed over to PTAD at the time of consolidation.

“It is worthy to note that we discovered that N17.4bn which comprised of cash, securities and properties from the nine insurance underwriters was unremitted as a result of the letter PTAD sent to them.

“These figures represent the claims by the underwriters with regards to their indebtedness.

“In order to ascertain the true position of legacy funds in custody of underwriters, the directorate appointed a consultant in 2018 who carried out forensic audit of nine out the 12 insurance underwriters and produced a final report on the recovery of the legacy funds and assets for PTAD.”

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Sterling Homes Plans To Reduce Housing Deficit

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Sterling Homes Limited has said it is committed to working with the government through private public partnership to reduce housing deficit in all the geo-political zones in the country.

The Managing Director, Mr Kunle Adeyemi, said this during an event on the company’s rebranding organised as part of its 10th year anniversary in Lagos on Friday.

During the event, the company while expressing commitment to excellence and customer satisfaction, unveiled its new logo with colours to define its mission and objections.

We want to be present in all the six geo-political zones on Nigeria by providing affordable luxury homes, excellent torch. So for us, there is a need for us to rebrand and have a new direction and vision.

“We want to partner with the government on the present housing deficit; we want to embrace a public, private partnership with the government to reduce the deficit in every geo-political zone.”

The managing director said that one of its unique selling points was its after sales services which was top notch.

He said it ensured that its customers were taken through the journey of actualising their dreams of becoming home owners.

While noting that everyone deserved to have a comfortable home despite the economic situation, he said it had designed a structure payment plan with zero interest in some cases to help intending home owners.

He said it also had provisions for high breed options and developing areas to accommodate various income levels.

Before the end of the year, he said, Sterling Homes would be establishing new presence and projects in other regions.

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Mutual Benefits Drives Financial Inclusion

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Mutual Benefits Assurance Plc says it is committed to deepening financial inclusion and creating easy accessibility for insurance in the country.

A statement from the firm on Friday said it expressed this commitment when it inaugurated its South-West region franchise operations in Ibadan, Oyo State.

The Managing Director, Mr Femi Asenuga, said this was part of its efforts to develop the insurance business and create values.

He said, “The role we all have to play is to be ambassadors of Mutual Benefits.

“A franchise is a well-known word and the way Mutual Benefits practices franchise is in our normal style of creating and adding value; we never rest.”

Asenuga said that the firm was working with stakeholders to increase awareness and take its message to the grassroots.

In developed economies, he said, insurance firms owned banks. He regretted that this was not the situation in Nigeria.

He said the firm would provide stakeholders with the platform and support to make them excel as a member.

The Managing Director, Mutual Benefits Life Assurance Limited, Mr Ademola Ifagbayi, appreciated the stakeholders and urged them to take advantage of the franchise.

The Group Managing Director, Odua Group, Mr Adewale Raji, in his address, advised stakeholders to be committed and showcase good character and integrity.

He said, “The Odua investment is owned by the six South-West governments and it is in our interest when economic, businesses and investment spreads across the South-West states.

“This is an opportunity for us to strengthen insurance penetration within the South-West states.”

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