Power distribution companies on Wednesday announced that they would require N8.7bn in order to comply with the revenue remittance order set by the Nigerian Electricity Regulatory Commission.
The power firms urged the National Assembly to intervene in the current liquidity crisis in the sector.
The Association of Nigerian Electricity Distributors in a statement issued in Abuja said the Discos would need N725m every month to meet the threshold of 35 per cent remittance level set by the NERC in the meantime.
Its Executive Director, Research and Advocacy, Sunday Oduntan, was quoted as saying, “To meet the new remittance expectations, Discos will have to finance an average gap of N725m per month, estimated at N8.7bn per year, until increased collections bridge the gap.”
The power firms stated that while they were expected to do a minimum remittance of N12.69bn, about 35 per cent for the July 2019 billing cycle, from a total N35.79bn invoice from the Nigerian Bulk Electricity Trading Plc, they actually remitted N8.06bn.
According to them, the outstanding was N4.63bn, adding that the eight Discos performed up to 23 per cent of the 35 per cent required of them for the month.
They argued that the inability of the Discos to meet the 35 per cent threshold specified by NERC was a direct result of the liquidity crisis in the power sector.
It said the Average Technical Commercial and Collection losses had remained high due to lack of liquidity, unattractive investment terrain and customer apathy to pay bills, a product of suspicion based on estimated billing and electricity theft.