Electricity DisCos Performance Below Expectation – NERC

ELECTRICITY

The Nigerian Electricity Regulatory Commission (NERC) that has been monitoring the Electricity Distribution Companies (Discos), Electricity Generation Companies (Gencos) and Transmission Company of Nigeria (TCN) indicated in its report that many of them performed below expectation in six months (between Q4’16 and Q1’17).

 

Discos

The report disclosed that Kaduna, Port Harcourt, and Yola Discos were the least performing electricity distribution companies with 5.8 per cent, 27.5 per cent and 32.2 per cent respectively.

However, it identified Ikeja, Benin and Abuja Discos as the highest performers with 54.7 per cent, 47.9 per cent and 44.4 per cent respectively.

These were followed by Jos, Ibadan, Eko, Kano and Enugu with 42.6 per cent, 40.4 per cent, 38.4 per cent, 37.4 per cent and 33.0 per cent respectively.

The Discos were scored based on their ATC &C effort (10 points), collection efficiency (15 points), metering commitment (20 points), HV clearn Index (10 points), MO remittance (15 points) and NBET remittance (30 points) respectively.

Specifically, many companies did not do well in most key performance indicators, thus impacting negatively on the sector and Nigeria’s economy.

The inefficiency associated with revenue collection has affected the operations of not only the Discos but also the Gencos.

Consequently, the Gencos and other operators in the power chain may have to struggle to run its operations as compliance to remittance from the Discos averaged less than 15 percent out of the 30 percentage points target.

The highest remittance was Abuja Disco with 14 percent, followed by Eko Disco with 13 percent; while Ikeja, Ibadan scored 11 per cent each, Enugu scored 10 percent. While Yola scored 4 percent; Kano and Jos scored 5 percent each.

Also, Kaduna, Port Harcourt and Benin scored 6 percent; 7 percent and 9 percent respectively.

Recommendations

Consequently, the report charged the Discos to speed up their customer enumeration exercises.

It stated: “Discos should adhere to commitment made to the commission on metering, network upgrade and expansion, enforcement of customer service standards to include respect forum office directives, 30 days timeline for new point load connections to promote ease of doing business, completer metering of MD customers, improvement in timelines for fault clearance and communication of planned outages.

“Discos should improve market liquidity: contract enforcement and sanctions for non-compliance, stop load rejection.”

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