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DisCos’ performance below expectation – NERC

The Nigerian Electricity Regulatory Commission (NERC) that has been monitoring the Electricity Distribution Companies (Discos), Electricity Generation Companies (Gencos) and Transmission Company of Nigeria (TCN) indicated in its report that many of them performed below expectation in six months (between Q4’16 and Q1’17).

The report disclosed that Kaduna, Port Harcourt, and Yola Discos were the least performing electricity distribution companies with 5.8 per cent, 27.5 per cent and 32.2 per cent respectively.

However, it identified Ikeja, Benin and Abuja Discos as the highest performers with 54.7 per cent, 47.9 per cent and 44.4 per cent respectively.

These were followed by Jos, Ibadan, Eko, Kano and Enugu with 42.6 per cent, 40.4 per cent, 38.4 per cent, 37.4 per cent and 33.0 per cent respectively.

The Discos were scored based on their ATC &C effort (10 points), collection efficiency (15 points), metering commitment (20 points), HV clearn Index (10 points), MO remittance (15 points) and NBET remittance (30 points) respectively.

Specifically, many companies did not do well in most key performance indicators, thus impacting negatively on the sector and Nigeria’s economy.

The inefficiency associated with revenue collection has affected the operations of not only the Discos but also the Gencos.

Consequently, the Gencos and other operators in the power chain may have to struggle to run its operations as compliance to remittance from the Discos averaged less than 15 per cent out of the 30 percentage points target.

The highest remittance was Abuja Disco with 14 per cent, followed by Eko Disco with 13 percent; while Ikeja, Ibadan, scored 11 per cent each, Enugu scored 10 percent. While Yola scored 4 per cent; Kano and Jos scored 5 per cent each.

Also, Kaduna, Port Harcourt and Benin scored 6 percent; 7 per cent and 9 percent respectively.

Consequently, the report charged the Discos to speed up their customer enumeration exercises.

It stated: “Discos should adhere to commitment made to the commission on metering, network upgrade and expansion, enforcement of customer service standards to include respect forum office directives, 30 days timeline for new point load connections to promote ease of doing business, completer metering of MD customers, improvement in timelines for fault clearance and communication of planned outages.

“Discos should improve market liquidity: contract enforcement and sanctions for non-compliance, stop load rejection.”

Meanwhile, the Nigerian National Petroleum Corporation (NNPC) and its upstream joint venture partner, ExxonMobil, are seeking new measures to expand existing operational portfolio with a view to increasing crude oil production and availability of gas for power generation.

Speaking in Abuja after a meeting with a high-powered ExxonMobil delegation led by Mr. Jack Williams, Senior Vice-President of the United States-based global oil corporation, Group Managing Director of NNPC, Dr. Maikanti Baru, said the joint venture with ExxonMobil, which until recently was the highest producer of crude oil in the country, was primed to make a rebound.

He said the Corporation had advanced talks with ExxonMobil on major operational issues like improved drilling to increase production and refurbishment of crude oil pipelines as well as supply of gas to the planned Qua Iboe Independent Power Plant among others.

“More importantly we also discussed their recommitment to supply gas to the domestic market and this is something that is very positive and they are willing; we would quickly roll-out the programme to ensure that sufficient gas comes in for the IPP. We also secured a commitment from them to end gas flare at QIT and other production areas,” he said.

Describing the meeting as very fruitful, Williams on his part noted that ExxonMobil was committed to growing its production in Nigeria ’’safely and with much integrity.’’

To underscore its aspiration for growth in production, Williams hinted that ExxonMobil was set to increase its JV budget for 2018 operations.

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