konga Ad Campaign konga Ad Campaign konga Ad Campaign
ADVERTISEMENT
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Monday, July 4, 2022
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Special Reports and Investigations
      • Health Specials
    • Features and Interviews
    • Multimedia
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
High tension electric powerlines

High tension electric powerlines

Nigeria electricity regulator plans to ‘reset’ tariffs

byIfeoluwa Adeyemo
September 5, 2018
2 min read

The Nigerian Electricity Regulatory Commission (NERC) is set to ‘reset’ its tariffs to provide needed revenue for better performance of the Transmission Company of Nigeria (TCN) and the Distribution Companies (DisCos).

The regulatory body disclosed this in its quarterly report published on its website, Wednesday.

Details in the report also indicated that during the first quarter of 2018, the total electricity generated was 8,511,481 Megawatts hour (MWh). This was two per cent less than the electricity generated in the previous quarter despite an increase in available generation units.

Also, the quarterly industry’s daily generation peak of 5,047MW recorded on the February 14 was less than that of the preceding quarter.

Factors, it said are responsible for the stranded capacity that led to the decline in generation include gas constraint majorly, limited distribution network, water management and transmission line limitation.

According to the report, with the decrease in generation, the average utilisation rate of the total available generation capacity declined by 1.1 per cent from 54.4 per cent recorded in the last quarter of 2017.

The commission reiterated its commitment to resolving the aforementioned constraints adding it has started executing actionable items identified in its 2017-2020 Strategic Plan towards addressing constraints in transmission and distribution networks.

Such plans include thorough technical assessment of DisCos utilisation of capital expenditure allowances, tariff increment and implementation of gas payment assurance facility for power generation.

“The Commission has initiated a process for thorough technical assessment of DisCos’ utilisation of capital expenditure allowances for relevance and cost efficiency.

“The Commission is also planning a tariff reset that adequately provides for revenue requirement necessary for TCN and DisCos’ optimal performance.

“Similarly, to resolve the issue related to a gas supply shortage, the government has started the implementation of gas payment assurance facility for power generation to enable GenCos to fulfil their payment obligations to gas suppliers,” the report showed.

Another challenge faced in the industry is the total system collapse, as it worsened in the first quarter of the year.

Although no partial system collapse was recorded for the quarter under review, total system collapse worsened, increasing from one in the last quarter of 2017 to six in the second quarter of the year.

“Five of the system collapse incidents occurred in January while one occurred in February. The system collapse was attributed to lack of generation by Egbin, Olorunsogo and Omotosho power plants, among others, due to gas constraints which resulted from the breakdown in the Escravos gas pipeline.”

Financial liquidity, the report indicated, remains the most significant challenge affecting the industry’s sustainability.

“This serious liquidity challenge is partly attributed to non-cost-reflective tariffs, and high technical and commercial losses aggravated by consumers’ apathy to payment arising from estimated billing and poor quality of supply in most load centres. Out of the ₦171.1 billion billed to customers in the first quarter of the year, only ₦106.6 billion was recovered, representing 62.3 per cent collection efficiency.

“Therefore, out of every ₦10 worth of electricity sold during the quarter under review, ₦3.8 is uncollected. The liquidity challenge in the Nigerian Electricity Supply Industry (NESI) was further reflected in the DisCos’ remittances relative to Nigerian Bulk Electricity Trader’s (NBET) and Market Operators (MO) invoices.

“In the first quarter of 2018, whereas DisCos were issued a total invoice of ₦163.1 billion for energy received from NBET and for the service charge by MOs, only ₦51.2 billion (31.4 per cent) was settled by DisCos, creating a huge shortfall of ₦112.0billion,” the report revealed.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket



Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: Call Willie - +2348098788999






PT Mag Campaign AD

Previous Post

Ahead of World Cup, D’Tigress meet with fans in Lagos

Next Post

Borno APC guber aspirant, Abba-Aji, rejects indirect primaries

Ifeoluwa Adeyemo

Ifeoluwa Adeyemo

More News

Vitol Group wall logo [PHOTO: Vitol]

Nigeria’s NSIA signs $50 million deal with oil trader Vitol towards carbon reduction

July 4, 2022
Executive Secretary of the Nigerian Content Development and Monitoring Board, Simbi Wabote. [PHOTO CREDIT: Twitter page Mr Wanote]

NCDMB Lauds High-Pressure Fuel Gas Skid For Shell’s Assa North Project

July 3, 2022
Debt Management Office (DMO) boss, Patience Oniha. [PHOTO CREDIT: Official Web page of DMO] Eurobonds

Debt Profile: Revenue generation is Nigerian govt’s main challenge – DMO

July 3, 2022
NCDMB headquarters

NCDMB, IOCs partner to develop oil, gas parks

July 3, 2022
The vessel that berthed at Calabar Port

Calabar Port receives first large vessel in three years

July 2, 2022
Guinness Nigeria

Guinness Nigeria Plc appoints new vice chairman

July 2, 2022
Next Post
Borno state on map used to illustrate the story

Borno APC guber aspirant, Abba-Aji, rejects indirect primaries

Gov. Abdulazizi-Yari

Zamfara APC adopts indirect primaries

Read All Comment

Search

AUN-PT Ad




Access Bank Ad







Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,905,369 other subscribers.

Advertisement




netherland biz school Advert



ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • #PandoraPapers
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • DONATE
  • About Us
  • Advert Rates
  • PT Hausa
  • Dubawa NG
  • Careers
  • Contact Us
  • Digital Store

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.