The electricity distribution companies in the country have said the daily energy sent out by the generation companies has averaged 3,453 megawatts since the power sector was privatised in November 2013.
Total power generation stood at 4,176.5MW as of 6pm on December 27, according to latest data obtained from the Ministry of Power, Works and Housing.
The Association of Nigeria Electricity Distributors, the umbrella body of the Discos, said in a statement on its website that the energy sent out had consistently fallen short of the Multi-Year Order Tariff 2015 generation assumptions governing the Discos’ operations and service delivery.
It said, “Sent-out generation is critical for the Discos’ commercial and technical performance. It is the key factor in determining the availability of electricity supply and its price to consumers in any electricity market.
“During 2018, the daily generation sent-out by Gencos has averaged an estimated 91,000 megawatt-hours (3,791.6 MW). However, the MYTO-2015 forecast for the year is 203,976 MWh (8,499 MW), which is more than double the reality of electricity supply.”
According to ANED, this huge deviation has dramatic consequences on the Nigerian electricity supply industry, especially for the Discos, as their revenue requirement assumptions are impossible to achieve by just receiving less energy than they are supposed to receive.
It said, “Since 2015, the compound annual growth rate of the average daily generation sent-out per year has been less than three per cent, which indicates that the generation has not increased due to the lack of new generation power plants, gas constraints, water constraints and grid constraints.”
The Discos noted that the situation was worsened by the failure of the Nigerian Electricity Regulatory Commission to implement six minor reviews to “alleviate the energy volumetric risk associated with MYTO 2015 generation assumptions.”
They said, “Correspondingly, the N1.4tn market shortfall, partially but significantly a product of the commercial impact of the generation deficiencies in the MYTO 2015, has limited the Discos’ ability to put in the necessary investments for network infrastructure expansion, network reliability, metering, customer services, worsening the liquidity crisis in the Nigerian electricity supply industry.”
The nation’s power sector was privatised in 2013, with 11 Discos and six generation companies handed over to core investors on November 1 that year.
On July 2015, the Federal Government took over Yola Electricity Distribution Company following the exit of the core investor.
Authored By: Femi Asu