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Power distribution firms owe government – NERC

By on February 27, 2014

Of the 11 electricity distribution companies in the country, only three have so far remitted to the Federal Government money due it, the Nigerian Electricity Regulatory Commission has said.

According to NERC, the development is in spite of the commendable improvement in revenue collection by the companies.

The commission, in a document on its third meeting with the power sector operators, noted that the defaulting firms would be contacted to explain why they failed to file their statements of accounts.

The document, which was made available to our correspondent by the Head, Public Affairs, NERC, Dr. Usman Arabi, stated that most Discos and power generating companies were up to date with their audit requirements for 2012, adding that out of the 11 Discos, nine had sent in their bank statements.

It stated, “The Market Operator’s response is being awaited for the matching review exercise, which is going to be conducted soon. Despite an obvious improvement in collection, only three Discos made full remittances.

“Eight Discos did not meet baseline remittances. The NERC is to send out a notice to the defaulting companies to allow for explanation/justification for late filing of statements of account within a specified timeframe in line with due process.”

The NERC also noted that it had informed President Goodluck Jonathan about the issue of indebtedness by the power firms and stressed that the Federal Government would not tolerate such an action.

It said, “The Chairman, NERC, Dr. Sam Amadi, informed the meeting that the required letter had been written to the President of the Federal Republic of Nigeria, emphasising the need for a service-wide circular communicating the grave consequences that non-payment will have on the sector.”

On the lingering Power Holding Company of Nigeria staffing issues, the commission said it had written to Vice President Namadi Sambo requesting that a meeting be convened to deal with the issue.

It stated, “In addition, the Bureau of Public Enterprises has set up a task force, which is currently conducting a verification of staff that have not been paid off (severed).

“Reports of progress in this respect were confirmed from Yola, Kaduna and Abuja Discos.”

The PUNCH had on Tuesday reported that the poor power supply across the country was linked to the serious financial challenges being faced by investors, who bought the electricity distribution companies from the government.

According to the Federal Government, the Discos lack the financial wherewithal to ensure efficient distribution of generated electricity.

 

 

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