Electricity distribution companies’ payment to generation companies for electricity generation has dropped by 50 per cent, according to industry data obtained on Sunday.
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 N72 billion, DisCos were able to remit only N37 billion, 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 (NESI), after which it shares payments to the GenCos and the transmission company.
Invoice and Payment Breakdown
The GenCos’ feedstock for power production is majorly gas. A breakdown of the data showed that Kanji got an invoice of N3 billion for January, but was paid only N1.5 billion.
Jebba had an invoice of N4 billion but received N2 billion, Shiroro had an invoice of N3 billion but got N1.7 billion, while Egbin, the largest power plant in Nigeria submitted an invoice of N10 billion, but got paid only N5 billion.
Ughelli Transcorp submitted an invoice of N7 billion in January but got paid a total of N4 billion, and Sapele Power Steam had an invoice of N945 millio but got paid N478 million. Geregu also got half payment of N4 billion after submitting an invoice of N8 billion.
The likes of AFAM IV-V got paid N609 milllion out of a total invoice of N1.2 billion. Olorunsogo also got paid N1.4 billion out of N2.7 billion, Omotosho Electric N1.4 billion out of N2.8 billion, and Alaoji NIPP N481 million out of N952 million.
The Chairman, the Nigerian Electricity Regulatory Commission (NERC), Garba Sanusi, said DisCos, GenCos, and Transmission Company of Nigeria had committed to signing contracts to deliver N5000 megawatts of electricity, starting from July 1.
However, the National President, Electricity Consumers Association of Nigeria, Chijioke James, told the press that the DisCos needed to take their responsibilities more seriously.
“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 be allocated 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 collected should be remitted appropriately to enable funds shared as at when due”, he said.