Five of the electricity Distribution Companies (DisCos) have failed to pay completely for over N16.2 billion electricity delivered to them by the Generation Companies (GenCos) in December 2017 as the electricity market performance crashed to 8 per cent, a report has shown.
The Nigerian Bulk Electricity Trading Plc (NBET) report also showed that two other DisCos made late payments after the due date while four others remitted at varying percentages of their energy invoice figures.
The Nigerian Electricity Regulatory Commission (NERC) at the February power sector meeting said it will implement sanctions against the DisCos for the poor remittances that were getting out of hand.
The Vice Chair of NERC, Sanusi Garba in minutes of the meeting said February, 2018 was the deadline given to the DisCos to comply with the market rules before sanctions would be meted out to defaulters.
The breakdown indicates that five defaulting DisCos who could not raise any figure in the month were Ikeja DisCo with a N4.5bn invoice; Jos DisCo had N2.7bn debt, Kaduna DisCo was to pay N3.8bn, Kano DisCo had N3.5bn and Yola DisCo had N1.7bn debt which were not paid.
The DisCos who paid at least some amount from their bills are Benin DisCo which paid N1.1bn out of N4.5bn invoice figure, and Port Harcourt DisCo paying N698m from N4.3bn debt.
Eko DisCo was rated the best as it paid 40 per cent of its bill amounting to N2.3bn from a N3.4bn debt. Enugu DisCo paid 21 per cent of N1bn from a N3.7bn debt for December; it later paid another N500m.
Ibadan DisCo paid 12 per cent of its debt which is N800m out of N5.9bn bill while Abuja DisCo paid only 6 per cent – N372m from a N5.9bn debt incurred in the month.
NBET said while the 11 DisCos consumed 92.5 per cent of the total electricity generated in the month amounting to N50.2bn, the DisCos only paid N4.4bn and left a a of N45.7bn with a market performance of 8.9 per cent.
Meanwhile the agency paid about 8.25 per cent of the invoice figures to 23 GenCos based on the collection from the DisCos, the report indicated.
For instance, Egbin GenCo which generated N9.05bn invoice for the period received just N747m payment from NBET, representing 8 per cent. Azura Power which produced the least invoice of N34.9m got N2.8m payment.
Commenting on the poorest performance of the market so far, Mr Kunle Olubiyo, a power sector pro-consumer activist said the DisCos are supposed to remit 100 per cent of the energy they get from GenCos through the Transmission Company of Nigeria (TCN) since the Transitional Electricity Market(TEM) began in 2015, but have clearly failed to do so. “Privatization is not completely a bad idea but the key players are undermining national interest,” he added.