The Electricity Distribution Companies (DisCos) have appealed to the National Assembly to intervene in the current liquidity crisis in the power sector.
The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors, Mr Sunday Oduntan made the appeal in a statement.
Nigeria’s Electricity Regulatory Commission, NERC, had informed eight DisCos that it would cancel their licences within 60 days for not complying with its remittance order of N27.7 billion energy invoice to the Nigeria Bulk Electricity Trading Company for July billing cycle.
Mr Oduntan said ”the affected DisCos, Abuja, Ikeja, Benin, Enugu, Kaduna, Kano, Port-Harcourt and Yola would need 8.7billion Naira to comply with the remittance order.”
According to him, the breakdown of the required amount shows that the DisCos will require a monthly amount of N725 million to meet the threshold of 35 per cent remittance level set by NERC in the meantime.
“To meet the new remittance expectations, DisCos will have to finance an average gap of N725 million per month (estimated at N8.7 billion per year) until increased collections bridge the gap,” Mr Odunta said.
Appealing to the Committee on Power to intervene so that the current intervention of N600 billion by the Nigerian Government in the sector goes beyond year 2020, Mr Oduntan also requested that NERC amend the remittance order to ensure compliance.
He also appealed that electricity debts owed by MDAs currently in excess of N100 billion be taken off or be discounted off the energy bills provides to the DisCos which would minimise the difference between current DisCos remittances and the NERC specified threshold.