*Nigeria failed 9,000MW target in 2018
Power Distribution Companies (DisCos) said the energy market has recorded N1.4 trillion shortfall because the Nigerian Electricity Regulatory Commission (NERC) failed six times to review the current tariff that came into effect in 2016.
Speaking at the weekend, the Association of Nigerian Electricity Distributors (ANED) said the Multi Year Tariff Order (MYTO) 2015 provides for a minor review every six months to determine certain indices like inflation, foreign exchange rate, domestic lending rate and power generation level.
The Director of Advocacy and Research at ANED, Mr Sunday Oduntan said, “The current tariff that we have, came on the 4th of February 2016. There has never been a single minor review. NERC where is the minor review? Due to this, our record shows a market shortfall figure in excess of N1.4 trillion on the value chain.”
He said the tariff which NERC refused to review, does not consider the actual electricity production cost as the indices rose without the industry reaching the commensurate power generation target.
Daily Trust reports that the highest generation level of 5,375 megawatts (MW) was reached in February 2019.
“In the current tariff, the assumption there is that by 2017, we would have generated 7,000MW and by 2018 we would have done 9,000MW.
“Are we on that now? TCN has not wheeled power up to 6,000MW for a period of one week since 1960 to 2019,” Oduntan said.
Mr Oduntan noted that the DisCos have performed well in the last five years of privatization as they provided 88 percent of their metering obligation.
A document from ANED shows that the DisCos increased their energy bill collection from N363 billion in 2017 to N438bn in 2018 representing 66 percent collection efficiency. They further reduced their Aggregate Technical, Commercial and Collection (ATC&C) losses from 53 percent then to 48 percent last year.
ANED however said the DisCos no longer have the obligation of metering customers because NERC has empowered Meter Assets Providers (MAP) companies to do that soon.
“Going forward, DisCos are no more in charge of metering. MAPs appointed by the regulator are the one in charge of metering,” he confirmed.
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