Electricity: DisCos Payment To GenCos Drop By 50% – Report

Electricity Distribution Companies’ payment to Generation Companies for electricity generation has dropped by 50 percent, Naija News understands.

Data from the Nigerian Electricity Regulatory Commission (NERC) showed that DisCos were unable to pay GenCos full payment for the quantity of power generated in January 2022.

As a result, the generation companies recorded a 50 per cent revenue shortfall, The Punch reports.

A breakdown of the data showed that although the 26 generating plants submitted an invoice totalling approximately ₦72bn, DisCos were able to remit only ₦37bn, putting the percentage drop in payment to GenCos to 50 per cent.

The 11 utility firms collect electricity tariffs on behalf of the Nigerian Electricity Supply Industry, after which it shares payments to the GenCos and the transmission company.

GenCos’ feedstock for power production is majorly gas. A breakdown of the data showed that Kanji got an invoice of ₦3bn for January, but was paid only ₦1.5bn.

Jebba had an invoice of ₦4bn but received ₦2bn, Shiroro had an invoice of ₦3bn but got ₦1.7bn, while Egbin, the largest power plant in Nigeria submitted an invoice of ₦10bn, but got paid only ₦5bn.

Ughelli Transcorp submitted an invoice of ₦7bn in January but got paid a total of ₦4bn, and Sapele Power Steam had an invoice of ₦945m but got paid ₦478m. Geregu also got half payment of ₦4bn after submitting an invoice of ₦8bn.

The likes of AFAM IV-V got paid ₦609m out of a total invoice of ₦1.2bn. Olorunsogo also got paid ₦1.4bn out of ₦2.7bn, Omotosho Electric ₦1.4bn out of ₦2.8bn, and Alaoji NIPP ₦481m out of ₦952m.