Privatised in 2013 to reverse epileptic power supply and survive without overdependence on government resources, the sector has been bogged down by a financial crisis involving over N4 trillion.
In the first quarter of this year, the DisCos couldn’t remit about N123.1 billion of the N156.9 billion worth of energy supplied to them by the Nigerian Bulk Electricity Trading Company . Though the NERC had planned to increase electricity tariff in April, the regulator dropped the bid as a result of the challenges posed by the COVID-19 pandemic, necessitating its postponement to July.
“Right now, there is a huge collection challenge across the DisCos. This has to be the main solution that needs to be looked into. An increase in tariff with the same problem of collection will result in more debt. The collection challenge is having a spiral effect across the industry. If DisCos can’t collect, NBET won’t be able to pay TCN and GenCos as well as gas suppliers. Cost reflective tariff is important,” Jaiyeola said.
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