Eko Disco recorded highest remittance efficiency in Q1, NERC reveals

· Jos, Kaduna DisCos record lowest performance


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Eko Disco recorded highest remittance efficiency in Q1, NERC reveals

 

The Nigerian Electricity Regulation Commission, NERC, has revealed that Eko Electricity Distribution Company, EKEDC, recorded the highest remittance efficiency of 43 percent in the first quarter of 2019.

 

The first quarter report was obtained from the website of NERC, which is the regulator of the industry.

 

Our Energy Correspondent, National, reports that NERC also disclosed that Jos and Kaduna DisCos had the lowest performance of 9.8 percent and 13.1 percent 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 noted 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.

On customer complaint, NERC said that the eleven DisCos nationwide received a total of 151,938 complaints during the first quarter as against 136,393 complaints received in the fourth quarter 2018. 

"Notwithstanding the increase in the number of complaints received, the proportion of the number of complaints resolved by DisCos increased slightly from 86.9 per cent to 87 per cent during the same period. During the same period, Ikeja DisCo had the highest number of complaints, while Yola DisCo recorded the lowest customer complaints." NERC added.

The Commission said EKEDC received 26,442 during the quarter out which 26,333 were resolved 109 pending, adding Eko Disco has the highest number resolved cases with 99.7 per cent efficiency.


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Yunus Yusuf
Energy Correspondent, National
Read other stories by Yunus Yusuf
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