Power Firms Fail to Remit N4.6bn Revenue

soonElectric power transmission towers
  • Power Firms Fail to Remit N4.6bn Revenue

Power distribution companies did not remit N4.62bn revenue due to the sector in May, the latest report on the monthly performances of the Discos obtained from the electricity Market Operator has shown.

An analysis of the report showed that the N4.62bn sectoral shortfall pushed up the total indebtedness of the Discos since the commencement of the Transitional Electricity Market to N115.98bn, as against the N111.36bn recorded in April this year.

The Federal Government had in 2014 announced the effective date for the commencement of all contractual obligations in the Nigerian electricity market as January 1, 2015, and stated that the TEM would commence the same day.

It explained that the main focus of the TEM would be the consummation of all contractual obligations as stipulated in the market rules, adding that the declaration was an attempt to make the market more mature and robust.

The Market Operator’s report was presented to industry stakeholders and the Minister of Power, Works and Housing, Babatunde Fashola, at the 17th monthly stakeholders’ meeting organised by the Abuja Electricity Distribution Company in the Federal Capital Territory recently.

The report also showed the individual shortfalls that had not been remitted by each of the 11 electricity distribution companies since the commencement of the TEM up to May 2017.

On the status of settlement and payment by the Discos for May, the MO stated that only two of the firms were able to make above 90 per cent remittances to the electricity market.

Nigeria has 11 power distribution companies. Only the Eko and Yola Discos remitted 100 per cent and 91 per cent revenue, respectively in May. The other nine remitted below 50 per cent.

The nine Discos and their percentage remittance to the market in May 2017 are Abuja, 29.7 per cent; Benin, 38 per cent; Enugu, 27.55 per cent; Ibadan, 35 per cent; Ikeja, 48.12 per cent; Jos, 15.42 per cent; Kaduna, 20.03 per cent; Kano, 18.21 per cent; and Port Harcourt, 20.6 per cent.

To address issues of non-remittance by the Discos, the Nigerian Electricity Regulatory Commission on Monday declared that it had commenced enforcement procedures in order to effectively collect revenue from the power distribution companies.

The commission’s resolve to begin forceful revenue collection was captured in the communique issued at the end of the stakeholders’ meeting, which read in part, “No other Disco made payments up to 50 per cent and NERC has commenced enforcement procedures for non-payment in the sector.”

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years experience as a foreign exchange research analyst and trader.

Be the first to comment on "Power Firms Fail to Remit N4.6bn Revenue"

Leave a comment

Your email address will not be published.