The 11 Power distribution companies in the country collectively owe the federal government N208.8t billion in 2022 alone.
The said amount is money they failed to remit to the Nigeria Electricity Supply Industry in 2022.
The power distribution companies collect electricity bills from consumers on behalf of the power market and are expected to make remittances to the power market through the Nigerian Bulk Electricity Trading Plc and the Market Operator, an arm of the Federal Government-owned Transmission Company of Nigeria.
However, figures from the Nigerian Electricity Regulatory Commission (NERC) showed that the Discos did not remit N49.23 billion, N31.3 billion, N58.3 billion and N69.94 billion in the fourth, third, second and first quarters of 2022, respectively, making a total of N208.8 billion.
The Fourth Quarter 2022 report of the NERC showed that the Discos did not make complete remittances in that quarter and the preceding ones.
“The combined invoices issued to the Discos in 2022/Q4 was N231.01bn consisting of: i) generation costs from the Nigerian Bulk Electricity Trading company: N188.74bn; ii) transmission and administrative services from the Market Operator: N42.27bn.”
“From this amount, the Discos collectively remitted a total sum of ₦181.78bn (₦145.91bn for NBET and ₦35.87bn for MO) with an outstanding balance of ₦49.23bn,” NERC said.
The commission further stated that poor remittance by the Discos was a direct consequence of the power firms recording higher than allowed Average Technical Commercial and Collection losses.
It further pointed out that the combined invoices issued to the Discos in the third quarter of last year was ₦204.84bn, adding that this was split into generation costs from the NBET, ₦164.34bn; and transmission and administrative services from the MO, ₦40.50bn.
“Out of this amount, the Discos collectively remitted a total sum of ₦173.55bn (₦140.67bn for NBET and ₦32.88bn for MO) with an outstanding balance of ₦31.29bn.”
On the power market remittance in the second quarter, the NERC stated that the combined invoices from the NBET and MO to the Discos in Q2 2022 was N185.01bn, split into generation costs – N149.89bn, while transmission and administrative services was put at N35.12bn.
Out of this amount, the Discos collectively remitted a total sum of N126.69bn (N102.35bn for NBET and N24.34bn for MO) with an outstanding balance of N58.32bn,” the report stated.
Similarly, data for the Q1 2022 report showed that the combined invoices from NBET and MO to Discos in the first quarter of 2022 year was N205.63bn, split into generation costs – N164.86bn; while transmission and administrative services was N40.77bn.
“Out of this amount, the Discos collectively remitted a total sum of N135.69bn (N109.96bn for NBET and N25.73bn for MO) with an outstanding balance of N69.94bn,” the commission stated.
