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  • Business - Companies
  • Updated: June 26, 2023

DISCOs Failed To Deliver Over N200 Billion In 2022 — FG

DISCOs Failed To Deliver Over N200 Billion In 2022 — FG

National Power Infrastructure

The Federal Government has revealed that power Distribution Companies (DISCOs) failed to remit a total of N208.8 billion to the Nigeria Electricity Supply Industry.

According to the data obtained on Sunday from the latest Fourth Quarter 2022 Report of the Nigerian Electricity Regulatory Commission, a Federal Government agency, as well as those from the First, Second and Third quarters showed that the Discos never made complete remittances through the period.

The 11 power distribution companies in Nigeria are responsible for distributing electricity to consumers in their respective franchise areas of operation includes; Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola Discos.

The DISCOs were created in 2013 as part of Nigeria’s power sector reforms aimed at improving the efficiency and reliability of electricity supply across the country.

The firms collect electricity bills from consumers on behalf of the power market. They make remittances to the power market through the Nigerian Bulk Electricity Trading Plc and the Market Operator, an arm of the Federal Government-owned Transmission Company of Nigeria.

However, figures obtained from the power sector regulator showed that the DISCOs did not remit N49.23 billion, N31.3 billion, N58.3 billion and N69.94 billion in the fourth, third, second and first quarters of 2022, respectively, making a total of N208.8bn.

Commenting on market remittance, in its fourth quarter report, the NERC said,  “The combined invoices issued to the Discos in 2022/Q4 was N231.01 billion consisting of: i) generation costs from the Nigerian Bulk Electricity Trading company: N188.74 billion; ii) transmission and administrative services from the Market Operator: N42.27 billion.”

“From this amount, the Discos collectively remitted a total sum of ₦181.78 billion (₦145.91bn for NBET and ₦35.87 billion for MO) with an outstanding balance of ₦49.23 billion.”

The NERC also stated that the combined invoices issued to the Discos in the third quarter of last year were ₦204.84 billion, adding that this was split into generation costs from the NBET, ₦164.34 billion; and transmission and administrative services from the MO, ₦40.50bn.

“Out of this amount, the Discos collectively remitted a total sum of ₦173.55 billion (₦140.67bn for NBET and ₦32.88 billion for MO) with an outstanding balance of ₦31.29 billion.”

On the power market remittance in the second quarter, the NERC stated that the combined invoices from the NBET and MO to the Discos in Q2 2022 were N185.01 billion, split into generation costs – N149.89 billion, while transmission and administrative services were put at N35.12 billion.

"Out of this amount, the Discos collectively remitted a total sum of N126.69bn (N102.35bn for NBET and N24.34 billion for MO) with an outstanding balance of N58.32 billion,” the report stated.

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