How GenCos suffered 50% revenue shortfall in January 2022
The payment by electricity distribution companies to generation companies for power generation in January has crashed by N35 billion, a dip of 50 per cent.
The industry statistics 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.
A breakdown of the data showed, according to a report by PUNCH, that although the 26 generating plants submitted an invoice totaling approximately N72bn, DisCos were able to remit only N37bn, 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.
The GenCos’ feedstock for power production is majorly gas. A breakdown of the data showed that Kanji got an invoice of N3bn for January, but was paid only N1.5bn.
Jebba had an invoice of N4bn but received N2bn, Shiroro had an invoice of N3bn but got N1.7bn, while Egbin, the largest power plant in Nigeria submitted an invoice of N10bn, but got paid only N5bn.
Ughelli Transcorp submitted an invoice of N7bn in January but got paid a total of N4bn, and Sapele Power Steam had an invoice of N945m but got paid N478m. Geregu also got half payment of N4bn after submitting an invoice of N8bn.
The likes of AFAM IV-V got paid N609m out of a total invoice of N1.2bn. Olorunsogo also got paid N1.4bn out of N2.7bn, Omotosho Electric N1.4bn out of N2.8bn, and Alaoji NIPP N481m out of N952m.
The Chairman, the Nigerian Electricity Regulatory Commission, Garba Sanusi, said DisCos, GenCos, and Transmission Company of Nigeria had committed to signing contracts to deliver N5000mw of electricity, starting from July 1.
However, the National President, Electricity Consumers Association of Nigeria, Chijioke James, told The PUNCH that the DisCos needed to take their responsibilities more seriously.
“Customers have been paying for their meters even when it is DisCos responsibility to meter every consumer. Even when most consumers pay, it takes time for them to be allocated a metre, this is despite the presidential directive on mass production of meters and distribution nationwide to consumers. We believe Discos need to wake up to their responsibility in the power sector. Funds collected should be remitted appropriately to enable funds shared as at when due”, he said.