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Discos Rue N543bn Revenue Loss In 12 Months -

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News

Discos rue N543bn revenue loss in 12 months

Discos rue N543bn revenue loss in 12 months

The Nigerian Electricity Regulatory Commission has released latest report which shows that total billing to electricity consumers by the 11 distribution companies stands at N816bn.

THECONSCIENCEng gathered that the report also shows that out of this amount, only N370bn has been collected by the DIiscos, leaving a total outstanding of N543bn.

The data was contained in the NERC’s Annual Report. The latest report shows that the loss was recorded in 2020.

The figures show that 74.33 per cent and 66.50 per cent billing and collection efficiencies were recorded, indicating 8.44 and 1.34 percentage points decline when compared with 2019.

The level of collection efficiency indicates that as much as N3.35 out of every N10 worth of energy sold during the year 2020 remained uncollected from customers as and when due.

Due to the low billing collection recorded by the Discos, the utility firms were also not able to fully pay for the quantum electricity supplied to them by the Nigerian Bulk Electricity Trading Plc.

Further findings reveal that during the year under review, a total invoice of N883bn was issued to the 11 Discos for energy received from NBET and for service charge by the Market Operator.

Out of the N883bn charged the utility firms, a sum of N370bn was settled, leaving a total deficit of N512bn in the market.

This payment indicates 42 per cent remittance performance, showing six percentage points increase from the final settlement rate recorded in 2019 (36 per cent).

Jam theconscienceng

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