The electricity Distribution Companies (DisCos) have implored the National Assembly to intervene in the current liquidity crisis in the power sector, saying they will need N8.7 billion to comply with the remittance order set by the Nigerian Electricity Regulatory Commission (NERC).
The Association of Nigerian Electricity Distributors (ANED) Executive Director, Research and Advocacy, Barr. Sunday Oduntan, in a statement on Wednesday, said the DisCos will require N725 million monthly to meet the threshold of 35 percent remittance level set by NERC in the meantime.
“To meet the new remittance expectations, DisCos will have to finance an average gap of N725 million per month (estimated at N8.7 billion per year), until increased collections bridge the gap,” the DisCos noted.
NERC had recently notified eight of the DisCos on cancelling their licence within 60 days for defaults in remittances.
However, ANED said while the DisCos were expected to remit at least N12.69bn (about 35%) for July 2019 billing cycle out of N35.79bn invoice issued by the Nigerian Bulk Electricity Trading Plc (NBET), the DisCos remitted N8.06bn.
The outstanding was N4.63bn as ANED insisted that the eight DisCos affected, performed up to 23% of the 35% required of them for the month.
“The inability of the DisCos to meet the 35% threshold specified by NERC is a direct result of the liquidity crisis in the power sector,” ANED noted.
It said the situation is further complicated by three years of delayed Minor Reviews and non-payment of electricity bills by the Ministries, Departments and Agencies (MDAs).
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