… Eko DisCo tops payment performance, as Kaduna DisCo lags behind
Oredola Adeola
In the fourth quarter of 2023 (Q4,23), the eleven (11) electricity Distribution Companies (DisCos) paid N188.70 billion, which is 69.88 percent of the total invoices of N270.05 billion issued by the Nigerian Bulk Electricity Trading (NBET) Plc. and the Market Operator (MO) for electricity purchased from Generation Companies (GenCos) and supplied to electricity consumers.
This was revealed in the fourth quarter Q3,23, statutory report released by the Nigerian Electricity Regulatory Commission (NERC) and obtained by Advisors Reports on Thursday.
The analysis of the data by Advisors Reports, as shown in the NERC’s statutory report, indicated that Eko Electricity Distribution Company (EKEDC) achieved a 97 percent threshold by remitting N37 billion, showing a 3.5% drop from the previous quarter.
Meanwhile, out of the 11 DisCos, Kaduna Electric had the lowest remittance, in the period under review, having paid N1 billion, representing 9% of the NBET/MO invoices. It also dropped by 50% in payment rate compared to the previous quarter.
Further analysis of the remittances in the Q4,23, showed that Yola Electricity paid N2 billion, representing 87 percent and dropping by 13.4%, while Ikeja Electric paid N35 billion, with a payment rating of 79%, which also decreased by 10.3% when compared with the previous quarter.
Abuja Electric recorded a 75% performance with N36 billion paid, a 0.3% drop, and Benin Electricity Distribution Company remitted N15 billion, achieving a 74% remittance target, and a 0.9% drop.
Port Harcourt DisCo paid N14 billion, representing 74% of the invoice, dropping by 4.7% while Ibadan Electricity Distribution Company (IBEDC) paid N20 billion, representing 68% of the invoice, and dropping by 8.3% compared with the previous figure.
Enugu DisCo (EEDC) paid N14 billion, with a payment rate of 55% of its quarterly invoice and dropping by 3.9% in payment rate compared with Q3,2023.
Jos Electricity paid N6 billion, 54% of the actual invoice, a 0.7% drop, while Kano Electricity paid N9 billion, 53% of the invoice, recording a drop in its payment rate of about 13% compared with Q3,2023.
Advisors Reports’ check showed that the eleven DisCos are mandated to collect revenue based on approved tariffs, which are subsidized by the government to gradually transition the sector to cost-reflective levels.
The mandate is structured under a contract-based electricity market with NBET, functioning as the bulk buyer of power generated and put on the National Grid by the GenCos through a Power Purchase Agreement (PPA).
The payment shortfall by DisCos, known as the Minimum Remittance, was assigned by the NERC through the Minimum Remittance Order, required the 11 DisCos to make 100% remittances to the MO, repay loans to the Central Bank of Nigeria, and remit a stipulated percentage of NBET’s monthly invoices.
