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No Improvement in Electricity Generated, Wheeled by TCN since 2015 – DisCos

Power distribution companies in Nigeria have said that there has been no significant improvement in the electricity generated and wheeled by the Transmission Company of Nigeria since 2015.
The companies made this known in their latest quarterly performance report.
When compared to the same period last year, the distribution companies claimed that revenue collection by the 10 private Discos dropped by N14bn or 11.4 per cent to N105bn in Q2 2020 as a result of the COVID-19 pandemic and lockdown.
“Since 2015, there has been no significant improvement in the energy generated and wheeled by TCN, that is finally received by Discos,” the report said.

Also Read: Power: Complaints Received by DisCos Rose by 15 percent in Q1 2020

“It continues low and flat, only affected by a seasonal effect between the dry and rainy seasons.
“Historical projections of the MYTO model has, demonstrably, remained inconsistent with the energy assumptions of the tariff model and this misalignment ends up increasing the tariff shortfall and accelerating NESI’s liquidity crisis.
“Moreover, NERC in the last TCN’s minor reviews, stated that ‘whereas the capital expenditure provided to TCN in MYTO-2015 Order was to support the evacuation of the average projected generation of 5,465MW in 2016 to 10,493MW in 2019, actual average generation remained between 3,500MW to 4,000MW during the same period’”
The distribution companies (Discos) said that the commercial performance improvement recorded by the Discos within the last quarters had been affected negatively by the impact of the COVID-19 lockdown.
According to the report, collection and efficiency dropped to an average of 64 per cent in the second quarter of this year.
“In particular, the collection efficiency in April was only 49 per cent, although it recovered to 76 per cent in June,” the report said.
Similarly, aggregate technical, commercial and collection losses moving average increased to 45.7 per cent by the end of June from 43.3 per cent in March, changing the declining trend that had been achieved in the last three years, the companies said.
The report reads in part: “The energy to be received by the Discos continues to be flat, low and far from any of NERC’s (Nigerian Electricity Regulatory Commission) projections under the MYTO (Multi-Year Tariff Order) financial model.

Also Read: New Power Tariff Implementation: It’s Time for DISCOs to Embrace Greater Automation.

“In the last minor review of December to January, NERC dropped its previous projection for 2020 from 123,000 MWh/day down to 96,000 MWh/day (an almost 30 per cent downwards review), which is the main reason for increasing the forecasted tariff shortfall for 2020 to N534bn (N426bn compared to 2019 June’s minor review).”
The Discos said the number of registered end-users in the Nigerian electricity supply industry kept increasing, currently at a rate of about 75,000 new customers per month, resulting in more than 9.5 million customers in total.
“Delays/barriers in the implementation of the Meter Asset Providers regulation is making the metering gap to grow, with almost a 59.7 per cent of the end-users unmetered,” the companies said.
“MAP regulation is not working as NERC expected.”

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