Nextier Power: DisCos paid only 26% invoices in 2016

Nextier Power, a sector advisory firm in Abuja has supported the federal government’s window for large power customers to buy electricity from the Generation Companies (GenCos) while calling for the quick release of the modalities.

The Principal Partner, Nextier, Mr Emeka Okpukpara, who spoke to Daily Trust yesterday about the eligible customer declaration by the Minister of Power, Works and Housing, Mr Babatunde Fashola, said it would improve liquidity in the power sector.

In a policy brief by his consultancy, Mr Okpukpara noted that the DisCos remitted only 26 per cent of the bulk energy invoice worth in 2016.

Statistical analysis from the firm showed that the DisCos were given invoices of about N347 billion for energy delivered to them in 2016 but paid just about N100bn leaving behind a significant debt.

“However, this declaration of eligible customers by the minister should address the liquidity challenge because such customers can contract directly with the GenCos and pay for electricity received,” it said.

Nextier said its survey showed over 50 per cent of the responding customers say they do not get value for the high bills they pay for electricity.

“This results in human and economic redundancy. It is expected that this change in policy direction should resolve this issue by allowing customers to buy power directly from independent licensees,” it said.

Another impact of the declaration, Mr Okpukpara said is the evacuation of stranded power resulting in supply of more electricity to customers.

The power advisory firm, however noted that there may be challenges with the implementation barring the release of modalities from the Nigerian Electricity Regulatory Commission (NERC).