Published On: Fri, Sep 7th, 2018

NERC worries over poor remittance by DisCos in Q1 2018

Dr. Anthony Akah, Acting Chairman, NERC

The Nigerian Electricity Regulatory Commission (NERC) has expressed concerns over poor remittance of electricity invoice by the 11 Distribution Companies (DisCos) in the first quarter of 2018.

NERC in its 2018 first-quarter report published on its website on Friday said that tariff deficit was partly responsible for the industry poor remittance, with DisCos remitted only N51.2

billion of electricity invoice out of the total N163.1 billion they received during the period under review.

The latest report indicated that liquidity challenges in Nigeria Electricity Supply Industry (NESI) had continued to manifest in the first quarter of 2018.

It noted that DisCos needed to improve on their remittances, adding that the remittance performance did not reflect the level of revenue collection.

The report said the commission would enforce actions to ensure equitable distribution of market revenue under a structured regime.

It further said that a framework to further ensure transparency in the utilisation of market funds to improve the liquidity in NESI was being developed by the commission.

The commission said was due to the level of remittance of market invoice.

NERC said DisCos remittances were invoices received for energy purchased from the Nigeria Bulk Electricity Trader (NBET) and those received for administrative services from the Market Operator (MO).

“In the period under review, whereas DisCos were issued a total invoice of N163.1billion for energy, only N51.2billion of the invoice was settled, creating a total deficit of N112.0billion”, it said.

NERC said similar to fourth quarter remittances in 2017, none of the DisCos remitted up to half of their market invoices in the first quarter of 2018.

According to NERC, only Eko and Ikeja DisCos settled up to 45 per cent of their market invoices, while all other DisCos settled below 40 per cent of their invoices in the quarter under review.

NERC, however, said overall market remittance improved from 24 per cent in fourth quarter of 2017 to 31 per cent in the first quarter of 2018, but noted that the remittance performance remained significantly low.

“Similar to the fourth quarter of 2017, MO received 40 per cent remittance of the invoice issued for service charge during the first quarter of 2018.

“Although there was no noticeable change in the overall revenue collection efficiency of the DisCos.”

According to NERC, Eko DisCo had the highest remittance of 45 per cent, indicating a 2 per cent drop from its remittance performance in the preceding quarter.

“There was 7.3 per cent increase in total combined remittance to NBET and MO in the first quarter of 2018 relative to the last quarter of 2017,” NERC said.

© 2018, Hallmarknews. All rights reserved. Reference and link to this site is required if you wish to reuse any article.

Reactions from Facebook

comments and opinions

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • Bulls return to stock market, appreciates 0.33%

    By FELIX OLOYEDE The Nigerian equity market on Thursday trended upward, reversing the previous day’s negative sentiment. The bourse gained 0.33 per cent, propelled gains recorded in medium and large capitalized stocks with WAPCO setting the pace. The All Share Index (ASI) appreciated by 105.77 absolute points, representing a growth of 0.33 per cent to […]

  •  Elumelu Foundation to launch world’s largest digital platform for African entrepreneurs

    The Tony Elumelu Foundation has concluded all plans to launch the world’s largest digital platform for African entrepreneurs and the African entrepreneurship ecosystem –  TEFConnect. TEFConnect will officially be unveiled at this year’s TEF Forum, taking place on October 25, 2018, at Federal Palace Hotel, Lagos, Nigeria. Harnessing and building on the success of Africa’s […]

  • NNPC declares 46% trade surplus

    Nigerian National Petroleum Corporation (NNPC) has stated on Thursday  that it had trade surplus of about 46 per cent in oil sales in the month of April, 2018. NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a statement noted that the trade surplus which amount to N17.16 billion was part of the highlight […]

  • 2018 GTBank Fashion Weekend to hold in November

    Fashion enthusiasts all over the world will be treated to an unparalleled exposé of Africa’s finest in fashion at the 3rd edition of the GTBank Fashion Weekend, which is bid to hold between  November 10-11, 2018, The two-day event will bring together renowned fashion personalities from around the world and budding small businesses in the […]

  • NDIC hosts IADI Africa Regional Committee AGM

    The Nigeria Deposit Insurance Corporation (NDIC) will host the next edition of the International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual General Meeting and Technical Assistance Workshop. The event which has been scheduled to hold at the Four Points by Sheraton Hotel, Lagos from September, 25th – 27th 2018, would be focusing on Financial […]

  • Ambode 2019: The godfather’s revolt

    By OBINNA EZUGWU As uncertainty continues to hover around the second term bid of Lagos State governor, Akinwunmi Ambode, following an alleged plot by the state’s political godfather, Senator Bola Ahmed Tinubu to hand the ruling All Progressives Congress (APC) ticket to the Managing Director of Lagos State Property Development Corporation (LSPDC), Mr. Babajide Sanwo-olu, […]

  • FG to generate N6bn from concession of 20 Silos

    The Federal Executive Council (FEC) on Wednesday approved the Concessioning of 20 out of its 33 Silos to private sector operators at the cost of N6 billion. The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, revealed this when he briefed State House correspondents on the outcome of the meeting of the Federal Executive […]

  • Insurance sector sell-off drags capital market down, loses 0.02%

    The Equity Market on Wednesday shed 0.02 per cent, reversing yesterday’s positive sentiment. The downturn was on the back of the massive sell-off in Insurance stocks among others, which dragged the All Share Index (ASI) down by 5.88 absolute points, representing a dip of 0.02%, closing at 32,375.12 points. The Market Capitalization also dipped by […]

  • Number of extremely poor continues to soar in Sub-Sahara Africa

    Although globally, extreme poverty has rapidly declined, the number of people living in extreme poverty is, however, on the rise in Sub-Saharan Africa, comprising more than half of the extreme poor in 2015, a new poverty estimates by the World Bank has shown. Forecasts also indicate that by 2030, nearly 9 in 10 extremely poor […]

  • MAN sets for 46th AGM as Jacobs bows out 

    The Manufacturer Association of Nigeria (MAN) has unveiled plans for its 46th Annual General Meeting and Manufacturers Annual lecture/Presidential Luncheon, which is scheduled for  September 26 and 27, 2018 in Lagos. The occasion will also see the outgoing President of MAN, Dr. Frank Udemba Jacobs end his 4-year tenure. The event will play host to […]

  • Naira firms up marginally at I&E forex market

    The Naira appreciated slightly against the dollar at the Investors and Exporters (I&E) Foreign Exchange window on Wednesday, assisted by new interventions by the Central Bank.  The local currency was up 0.09 per cent after opening at $/N363.03, traded high at $/N364.75 and eventually closed at $/N362.97. A total of $112.66 million was transacted at […]

  • Heritage Bank partners NPA to support improved ports infrastructure in maritime sector 

    The maritime sector through Nigerian Port Authority (NPA) is set to get improved infrastructural boost as Heritage Bank Plc revealed plans to provide financing for building critical maritime infrastructures and other aspects of transport sector projects once policies driving the projects are well structured. The MD/CEO of Heritage Bank, Ifie Sekibo disclosed this as one […]

  • Rivers, Delta, Bayelsa lead BudgIT’s 2018 fiscal sustainability index

    BudgIT, recently analysed the fiscal condition of states and noticed that states fiscal account generally improved on the back of increasing oil revenue. It was critical that State governments embrace a high level of transparency and accountability, develop workable economic plans, take haircuts — especially on overheads — expand their internally generated revenue (IGR) base, […]

  • CBN intervenes with $210m in forex market

    The Central Bank of Nigeria has sustained its intervention in the Inter-Bank Foreign Exchange Market by injecting 210 million dollars into the various segments of the market. The Director, Corporate Communications, CBN, Mr Isaac Okorafor, on Tuesday in Abuja, said the apex bank offered 100 million dollars as wholesale interventions and allocated 55 million dollars […]

  • Minimum wage: Osinbajo meets Economic Management Team behind closed door

    Vice President, Yemi Osinbajo, is currently presiding over the meeting of the Economic Management Team (EMT) meeting, specially dedicated to discuss the review of the national minimum wage. The meeting holding at the Presidential Villa, has in attendance the Ministers of Finance, Zainab Ahmed, Budget and National Planning, Udoma Udo Udoma, Industry, Trade  and Investment, […]

  • NNPC tasks PLAN over pipeline venture

    The Nigerian National Petroleum Corporation (NNPC) has urged the Pipeline Professionals Association of Nigeria (PLAN) to proffer solutions that could lead to a dramatic change and expansion of pipeline business in Nigeria. Dr. Maikanti Baru,NNPC  Group Managing Director challenged  the association  while Delivering  Keynote address at the Nigerian International Pipeline Technology and Security Conference (NIPITECS […]