Remittance: Eko Electricity Leads With 43% in Q2 – NERC
Nigerian Electricity Regulation Commission (NERC) has released its 2019 Second Quarter Report, indicating that Eko Electricity Distribution Company (EKEDC) recorded the highest remittance efficiency of 43.3% in the period under review.
In the Report currently uploaded on the NERC website, the Commission also said Jos and Kaduna Discos had the lowest performance of 13.1% and 13.5% respectively during the same period under review. The Commission expressed concern over the significant drop in Enugu DisCo’s remittance rate from 30.44 per cent in Q1 2019 to 24.55% in Q2 2019.
“The challenge of low remittance to the market is still a 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 the Nigerian Bulk Electricity Trading (NBET) Plc 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, which is impacting their capacity to perform their statutory obligations. The individual performance indicates that, with the exception of Enugu and Ibadan DisCos, the DisCos recorded increase in their remittance performance in the second quarter of 2019.
“Also, the aggregate combined invoice settlement rate for all Discos rose to 30.6%. However, none of the Discos remitted up to 50 per cent of their market invoice,” the News Agency of Nigeria quoted the report. The commission noted that DisCos must improve their efforts towards reducing Aggregate Technical, Commercial and Collection (ATC&C) losses to levels commensurate with their performance agreements. It said Ikeja Electric recorded the highest progress in reducing ATC&C losses, decreasing to 25.9% in the second quarter of 2019.
NERC said seven other DisCos, excluding Abuja, Enugu and Yola, also recorded relative improvements in their ATC&C losses during the quarter under review.
By Chibisi Ohakah