DisCos’ Payment To GenCos Drops By 50%

Electricity distribution companies (DisCos) payment to generation companies (GenCos) for electricity generation has dropped by 50 per cent.

The statistics showed that DisCos were unable to pay GenCos full payment for the quantity of power generated in January 2022.

As a result, the generation companies recorded a 50 per cent revenue shortfall.

A breakdown of the data showed that although the 26 generating plants submitted an invoice totaling approximately N72bn, DisCos were able to remit only N37bn, putting the percentage drop in payment to GenCos to 50 per cent.

The 11 utility firms collect electricity tariffs on behalf of the Nigerian Electricity Supply Industry, after which it shares payments to the GenCos and the transmission company.

The GenCos’ feedstock for power production is majorly gas. A breakdown of the data showed that Kanji got an invoice of N3bn for January, but was paid only N1.5bn.

Jebba had an invoice of N4bn but received N2bn, Shiroro had an invoice of N3bn but got N1.7bn, while Egbin, the largest power plant in Nigeria submitted an invoice of N10bn, but got paid only N5bn.

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