The Chief Executive Officer (CEO) of the Association of Nigeria Electricity Distributors (ANED), Mr Azu Obiaya, has said that a build up of shortfalls has led to the electricity distribution companies (DisCos) piling up a loss of N892.4 billion, The Nation reports.
He said that the N892 billion debt is actually as a result of the buildup of a number of factors. One was a buildup of the N100 billion subsidy government promised which the Discos never saw. He added that the freezing of the R2 class of customers for 18 months as well as the removal of collection losses also added to this.
He said that in putting together MYTO 2015, the Nigerian Electricity Regulatory Commission (NERC) not to upset Nigerians said the tariff would be sculpted leading to an under-recovery of N497 billion for the Discos. He added that in relation to the tariff, the following items; generation, inflation and foreign exchange, among others which were to be adjusted every six months were often miscalculated when faced with reality.
He also blamed the significant consumer push back with the roll out of MYTO 2015, due to the National Assembly encouraging people not to pay, the regulator (NERC) incorporating the order that says “if you are not metered in six days, don’t pay,” as well as a litany of litigations against the Discos for also contributing immensely to the huge shortfall.
Source: Energy Mix Report