The crisis in the Nigerian Electricity Supply Industry (NESI) worsened as the electricity generation companies (GenCos) accused the electricity distribution companies (DisCos) of being insincere with their account records.
Whereas the DisCos had condemned the request from the Nigeria Electricity Regulatory Commission (NERC) to open up their books, the GenCos under the auspices of the Association of Power Generation Companies (APGC), described it “as not just a welcomed development, but also a wake-up call to all participants in the electricity market.”
The APGC Executive Secretary, Dr. Joy Ogaji, in a chat with newsmen in Abuja, recalled that a fortnight ago the Association of Nigerian Electricity Distributors (ANED) likened the move to centralize their revenue accounts to nationalisation of the DisCos.
Ogaji expressed surprise that DisCos are churning out stories and “crying wolf” to gain consumers’ sympathy whereas the NERC enacted the tariff with their consent.
“There is something that Discos are not telling the people. What government is calling for is not just escrowing but visibility,” she said.
The executive secretary stated that the electricity sector is a value -chain that needs to be remunerated as applicable covering the cost of generation, transmission and distribution.
The GenCos, according to her, are entitled to “60 per cent of markets remittance as they not just generate power but also pay for gas supply and gas transportation. Transmission charge cost 11 per cent, distribution gets 25 per cent while the remaining four per cent is meant for regulatory charges and NBET.
“The revenue referred to by the distribution companies are not their personal revenue but market funds to which they were made trustees to collect and remit.”