NERC Says Electricity Consumers Fail To Pay N280bn Electricity Bills To DisCos.


An analysis of Nigerian Electricity Regulatory Commission (NERC’s) quarterly report has shown that electricity consumers failed to pay N280.98bn to electricity Distribution Companies (DisCos) from January to September 2023,

The debt according to the report, is from the N1.06trn bill that was issued to consumers.

A breakdown showed that N112.29bn was the amount not paid from the N359.38bn issued to customers in the first quarter while N86.75bn was the sum not paid for from the N354.61bn bill issued in the second quarter and N81.94bn not paid from N349.55bn issued in the third quarter.

The report also showed that the federal government paid N375bn as subsidy during the period.

According to NERC, the subsidy payment was due to the absence of cost-reflective tariffs.


“The government undertakes to cover the resultant gap (between the cost-reflective and allowed tariff) in the form of tariff shortfall funding. This funding is applied to the NBET invoices that are to be paid by DisCos.

“The amount to be covered by the DisCos is based on the tariff that they are allowed to charge and set out as their Minimum Remittance Obligation (MRO) in the periodic Tariff Orders issued by the commission.”

It noted that the government incurred a subsidy obligation of N204.5bn Q3 (average of N68.2bn per month), which is an increase of N69.3bn (+51.30%) compared to the N135.2bn (average of N45.08bn per month) incurred in Q2.

It said the subsidy for Q2 was an increase of N99.2bn (+275%) compared to the N36.02bn incurred in 2023.

It attributed the rise in subsidy payment to the increase in the government’s policy to harmonise Nigeria’s exchange rate.

It added that none of the four international customers Generation Companies (GenCos) made payment from the cumulative invoice of $11.16m issued for the services rendered.

Similarly, there were also no remittances by bilateral customers against the cumulative invoice of N2.81bn issued to them.

Reduced power supply as Egbin plant undergoes maintenance.

Meanwhile, the Transmission Commission of Nigeria (TCN) has stated that power supply across the country would be reduced due to the shutdown of the Egbin Power station.

The power plant, which is the largest in West Africa, would undergo maintenance works for three days.

A statement by the TCN said: “This is to notify the public that as at 11:13 hours of 18th December 2023, Egbin Power generating station was shut down to allow the Nigeria Gas Company (NGC) maintain a linking gas pipeline supplying gas to Egbin Power station.”

It said the shut-out means a reduction of 676MW of bulk power generated into the nation’s grid.

“Consequently the quantum of bulk power available to be delivered to distribution companies load centres nationwide for the period.”

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