Five DisCos default N16.2bn December remittance

A recent report made available by the Nigerian Bulk Electricity Trading Plc (NBET) has shown that five of the eleven electricity distribution companies (DisCos) failed to remit over N16.2 billion electricity generation companies (GenCos) supplied to them in December.

The five DisCos did not remit any amount in the month of December, while two others made late payments after the due date, and four others paid at varying percentages of their energy invoice figures.

The report also indicated that the electricity market performance crashed to eight percent.

The five defaulting DisCos that could not raise any figure in the month were Ikeja DisCo with N4.5bn invoice, Jos DisCo with N2.7bn debt, Kaduna DisCo owed N3.8bn, Kano DisCo had N3.5bn and Yola DisCo had N1.7bn debt.

The DisCos who made part payments were Benin DisCo that paid N1.1bn out of N4.5bn invoice figure and Port Harcourt DisCo which paid N698m from N4.3bn debt.

Rated the best, Eko DisCo paid 40 percent of its bill which amounted to N2.3bn from a N3.4bn debt. Enugu DisCo paid 21 percent of N1bn from N3.7bn debt for December and it later paid another N500m.

Ibadan DisCo paid 12 per cent of its debt which is N800m out of N5.9bn bill, while Abuja DisCo paid only six percent – N372m from a N5.9bn debt incurred in the month.

However, the DisCos are meant to remit 100 percent of total power generated by GenCos and transmitted to DisCos by the NBET, which serves as the bulk trader.

NBET said while the 11 DisCos consumed 92.5 percent of the total electricity generated in the month amounting to N50.2bn, the DisCos only paid N4.4bn and left a sum of N45.7bn with a market performance of 8.9 percent.

At a power sector meeting in February, the Nigerian Electricity Regulatory Commission (NERC) said it would implement sanctions against the DisCos for the poor remittances that were getting out of hand.