Eko Disco recorded highest remittance efficiency in Q1 says NERC



The Nigerian Electricity Regulation Commission (NERC) on says Eko Electricity Distribution Company (EKEDC) recorded the highest remittance efficiency of 43 per cent in the first quarter of 2019.

The first quarter report was obtained on Sunday by the Nigeria News Agency in Lagos from the website of NERC, which is the regulator of the industry.

NERC also said that Jos and Kaduna DisCos had the lowest performance of 9.8 per cent and 13.1 per cent respectively during the same period.

The Commission also expressed concern on the significant drops in Enugu and Ikeja DisCos’ remittance rate from 34 per cent and 42 per cent in the last quarter of 2018 to 30 per cent and 39 per cent respectively in the first quarter of 2019.

NERC said the liquidity challenge in the Nigerian electricity industry has continued to manifest during the first quarter of 2019.

The report also said that the challenge of poor remittance has remained a serious concern to the commission as it is one of the main causes of the liquidity crisis facing the Nigerian electricity supply industry.

” As highlighted in the preceding quarters, low remittance adversely affects the ability of Nigerian Bulk Electricity Trading (NBET) to honour its financial obligations to GenCos.

“Service providers Transmission Service Provider (TSP), Market Operator (MO) and NERC also struggle with the paucity of funds impacting their capacity to perform their statutory obligations.

“The individual performance indicates that four DisCos recorded an increase in remittance performance in the first quarter of 2019.

” None of the DisCos remitted up to 50 per cent of their market invoice and the aggregate combined invoice settlement rate for all DisCos declined to 28 per cent,” the report said.

On Aggregate Technical, Commercial and Collection (ATC&C) reduction, NERC said EKEDC recorded the highest progress in reducing ATC&C losses, decreasing from 42.2 per cent to 29.8 per cent (12.5 percentage point decrease) in the first quarter of 2019.

The Commission also said that other DisCos that recorded relative improvement in their ATC&C losses during the quarter under review were Ibadan, Ikeja, Jos, Kaduna and Kano.

It said the average ATC&C for all the DisCos in the first quarter of 2019 increased to 48.72 per cent from 46.96 recorded in the preceding quarter.

“This increase in the overall ATC&C was largely due to the increase in collection losses which increased by 4.2 percentage points during the quarter and still account for the largest share of the aggregate losses.

“Similar to the preceding quarter, the ATC&C losses are still substantially greater than the expected industry average of 26 per cent – the allowable ATC&C losses provided in the Multi-Year Tariff Order ( MYTO) for the year 2019,” the report said

NERC said that the high ATC&C losses reflect low investments in distribution networks aggravated by the low level of metering of end-use customers, thus creating lingering liquidity challenge to the industry.

“The implication of the level of the ATC&C losses in the first quarter of 2019 is that, on average, as much as N4.87 in every N10 worth of energy received by a DisCo was unrecovered.

“This is due to a combination of energy theft, inefficient distribution networks, weak management effort in revenue collection, and low metering and willingness to pay by customers,” it said.


Edited by Oluwole Sogunle

Inter hits two late goals to beat Fiorentina 4-3 Beaten Betis coach Pellegrini blames VAR in defeat to Real Madrid COVID-19: Nigeria cases now 58,198 with 49,722 discharged Ministry official advocates regular dog vaccination to end rabies by 2030 COAS inspects ongoing projects in Army Super Camp, Ngamdu School resumption: Expert advocates provision of clean water to check spread of infections Armed Forces College holds memorial service for 1992 Ejigbo plane crash victims Increased tariff: Previous administration created problem in power sector Scores of terrorists killed in massive airstrikes on hideouts in Borno – DHQ Wike promises early completion of 258-bed mother, child hospital in Port Harcourt Yobe IPAC agrees with LG elections postponement Brazil court postpones league game after several COVID-19 positive tests Don charges media on changing maternal health narratives FG hands over Ogoni remediation sites to NOSDRA for scientific analysis Chilean team discover match postponed after 1,500 km trip Buhari condemns attack on Gov. Zulum’s convoy, killings of security agents Edo election: We have learnt our lesson — APC Environmental: Kano Govt deploys 1,000 sanitation vanguards Christian women pray over insecurity in Jos Chelsea recover from 3 goals down to draw at West Brom Ondo 2020: No plan to collapse our structure for another party – ZLP Structure NGO tasks youths on self-development, empowers 100 with N200, 000 each FG set to address flooding as HYPPADEC takes off soon Police, vigilante group apprehend 3 bandits in Oyo DPR reinforces revenue collection channels COVID-19: PTF urges religious leaders to ask congregation to wear facemask NERC working on ways to monitor quality of service -Commissioner  Federal lawmaker presents car gifts to campaign coordinators in Ibadan Gov. Zulum mourns Col. Dahiru Bako killed by insurgents in Borno NCDC announces 195 new COVID-19 cases, death toll hits 1,100 NSE, others commit to expanding retail investment opportunities in capital market Imo Govt. moves to restore Owerri masterplan to check flooding Cyber-security: CSCS chief, others say collaboration key APC congratulates Gov. Obaseki on his re-election as Edo State Governor Tinubu hails wife at 60 No directive to constitute disciplinary c’tee against us — Ojudu, others NCAA to revoke erring airlines license over non-compliance with COVID-19 protocols African tourism leaders recommend MICE for sectoral recovery  We have finally caged the lions from Edo politics, says Gov. Obaseki Awosika, Dare, others to speak at NBC Youth Summit Edo speaker congratulates Obaseki, commends Buhari, INEC, others  Konsa seals Villa win over 10-man Sheffield United Group condemns attacks on women during governorship election in Edo COVID-19: NCDC says Nigeria not testing adequately Police arrest 96 suspects over alleged cultism, robbery in Benue Gov. AbdulRazaq announces committee on Saturday’s rainstorm in Kwara Edo election: Observer faults integrity of governorship election Motorists decry state of roads in Kuje Kaduna NLC mourns Emir of Zazzau Health Minister says 10% of COVID-19 cases are under-19