The Nigerian Electricity Regulation Commission (NERC) has stated that the Eko Electricity Distribution Company (EKEDC) recorded the highest remittance efficiency of 43 per cent in the first quarter of 2019.
NERC, in a report published on its website recently, also stated that Jos and Kaduna Discos had the lowest performance of 9.8 per cent and 13.1 per cent respectively during the same period.
It also expressed concern over the significant drops in Enugu and Ikeja DisCos’ remittance rate which it stated, had dropped 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.
The commission added that the liquidity challenge in the Nigerian electricity industry has continued to manifest during the first quarter of 2019.
The report also stated that the challenge of poor remittance has remained a serious concern to the commission, attributing to one of the causes of the liquidity crisis facing the Nigerian electricity supply industry.
The NERC added: “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.