Electricity distribution companies’ payment to generation companies for electricity generation has dropped by 50%; according to industry data obtained by our correspondent.
The statistics showed that DisCos were unable to pay GenCos full payment for the quantity of power generated in January 2022. As a result, the generation companies recorded a 50% revenue shortfall.
A breakdown of the data showed that although the 26 generating plants submitted an invoice totaling approximately N72bn. DisCos were able to remit only N37bn, putting the percentage drop in payment to GenCos to 50 %.
The 11 utility firms collect electricity tariffs on behalf of the Nigerian Electricity Supply Industry; after which it shares payments to the GenCos and the transmission company.
The GenCos’ feedstock for power production is majorly gas. The Chairman, the Nigerian Electricity Regulatory Commission, Garba Sanusi, said DisCos, GenCos, and Transmission Company of Nigeria had committed to signing contracts to deliver N5000mw of electricity, starting from July 1.
“Customers have been paying for their meters even when it is DisCos responsibility to meter every consumer. Even when most consumers pay, it takes time for them to give a metre, this is despite the presidential directive on mass production of meters and distribution nationwide to consumers. We believe Discos need to wake up to their responsibility in the power sector. Funds compile should be remit appropriately to enable funds shared as at when due”, he said.