Epunchng - Most read newspaper in Nigeria 12th-Oct-2017 - Page 28

28 THURSDAY, OCTOBER 12, 2017 business & economy Electricity tariff shortfall hits N460bn Okechukwu Nnodim, Abuja T HE freeze on residential customers’ electricity tariff in the R2 class, smoothening of tariff across the country and changes to tariff assumptions, among other issues, have led to a tariff deficit of N460bn in the Nigeria Electricity Supply Industry. According to a report released by the Association of Nigerian Electricity Distributors, the N460bn tariff shortfall was from January 2015 to December 2016. The report, which was made public at a workshop in Abuja on Wednesday, stated that the 2015 tariff deficit resulting from the freeze on R2 residential tariff and removal of collection losses from power distributors’ tariffs, which was reinstated in the Multi-Year Tariff Order of that year, was N187bn. The R2 class consists of the largest group of electricity consumers who are mainly residents of various households across the country. The ANED stated that the 2016 deficit resulting from tariff smoothening for over 10 years (2015 to 2024) was N277bn, adding that an additional tariff deficit that year resulting from changes to tariff assumptions was N46bn. Outlining the tariff shortfall for the 11 Discos in the two- year period, the report stated that the Abuja Disco had a shortfall of N44.86bn; Benin, N53.1bn; Eko, N27.4bn; Enugu, N44.16bn; Ibadan, N58.8bn; and Ikeja, N37.16bn. Others are the Jos Disco, N36.68bn; Kaduna, N47.65bn; Kano, N39.95bn; Port Harcourt, N47.62bn; and Yola, N20.62bn. It stated that during the period prior to the declaration of the Transitional Electricity Market when the privatised power sector was under an interim rule, the industry recorded a tariff shortfall of about N200bn. This shortfall, it said, was due to the average technical and commercial loss validation during the period of interim rule in the power market. “This (shortfall) is currently being paid back by customers via tariff, with about 10 per cent interest,” ANED stated. It further noted that the 2015 tariff deficit resulting from the freeze on R2 residential tariff and removal of collection losses from power distributors’ tariffs, which was reinstated in the MYTO 2015 and amounting N187bn, was warehoused, adding that consumers would also pay it. Similarly, it stated that the 2016 deficit resulting from tariff smoothening for over 10 years and worth N277bn, as well as the additional 2016 tariff deficit resulting from changes to tariff assumptions of N46bn were also being warehoused. Meanwhile, the latest summary of invoices and remittances by electricity distribution companies to the power Market Operator has revealed that five of the Discos remitted below 20 per cent in terms of the funds required of them for the smooth operation of the sector. According to the MO in its presentation to participants at the recent power sector monthly meeting, the Eko, Jos, Kaduna, Kano and Port Harcourt electricity distribution firms remitted below 20 per cent revenue to the industry in August 2, as against the usual average of 30 per cent. This is coming as the power distribution companies on Wednesday insisted that they would reject electricity allocation sent by the Transmission Company of Nigeria to locations where they could not recoup their funds from consumers. The MO is an arm of the TCN, while the Discos are the primary revenue collector for the power sector. In the MO’s latest presentation on invoices and remittances, which was obtained by our correspondent from the TCN in Abuja on Wednesday, the agency stated that in the month under review, the Eko Disco remitted nothing; Jos remitted 16.63 per cent; Kaduna, 12.41 W"6VCbcBW"6VCB'@&6W'B#W"6VBbFRv&B&( 26V f6R&W6FVBFR#3FWfVVBvVFVBVFV6VBFR&W7VG2GVW6Fv6wFD2VFVB7FFW2GW&rFPVVWFw2bFRv&@&BFRFW&FWF'gVBVF7FFVBF@FRvW'2vW&R6VV7FV@F&Vvfv&W2F&VRЧ7FvR6VV7F&6W70WfVFrFR7&VFfG6vf66RfV6&ƗG@6&GbFR&62FR&WfWvW'266&FrF𦆖6VFVBVrv&@FR&WBW&F.( 0&W'B6WBFRW&6VFvPb&V֗GF6W2'FR'V&VVVwR&FV@F662BS"s#r"3cRC2B&W7V7FfVǒगB7FFVBFBFR&WfVVP6'Ff2&W7VBbFR &V֗GF6W2g&FRF662VwW7Bv2R&vRFP67VVFVB6'Ff66PFR6V6VVBbFPG&6FVV7G&6G&W@V'#Rv23S&WrvFRf&0vW&RB&V֗GFrFR&WV&V@VG2FFR6V7F"FPWV7WFfRF&V7F"&W6V&6 4t$BFVw&FখFR6VVBGW7G'26frFR6VG'WF#C&Vǒf&vPg&6226B66&FrFFRf&6Vf7GW&Rb6VVB066VV7FVB66G7&V6Rg&Gv֖ƖF3"֖ƖWG&2FW266P&6v&BFVw&F&VvখFR6V7F"#"FRF&V7F"`&7W&VVBf&vRg&62RFRV֒v2VFVBFfR6BF0GW&r'&VWB6W76&6v&BFVw&FVf7GW&rBFRvpR6B( FW&R2vP6"&V֗BFR&WV&V@VBvVR6V&GV7@FB2v'Fcf"3SगBv( Bv&62r0FRD4vG2FGV@vW&RvRF( BVVBBvRv&VV7BB( VRvFBf VV7G&6G6VBBWV7@vW"BvR6B6FVPF7WǒFVvW"66PFWfR&FFǒ&VgW6VBF6ǒ'rFV"&26v6VBvW"F7V66W0BWV7BW2F66WBBvV৖RrB2V&fF&RFW02'W6W7266W&3( Ю( $#vrF&V7F"f6w&W"vVƖwFvrF&V7F"4Tg&6F66fW'w&W"W76W#7&72&fW'27FFRvfW&"&b&VFSvrF&V7F"fG&G2Fg&6"6F&VvB6&etRvW7FW&VW&wƖ֗FVB"V'W&RgFW"FR6vrbFRR&WGvVV7&72&fW"7FFPvfW&VBBF"vW"77FV22FRsSrfFrvW"vVW&FB6&"GVW6FF7&72&fW"7FFRvfW&VBW6PvW&v2v&B&( 2WFFWfVVBFFfP"FR6V6B7V66W76fPV"vW&2vFPFV2f"7FFFfRWF6WFFf6rf"FWfVVBv62&v6VB'FPv&B&w&W6&&FvFFR6Ɩ6VFW"f"'W6W72WF70&W6V&6vW&( 2vr&6( ĶFgR( 6RWBF2g&ЦrsC2&62g&У6VG&W2vRVvF( 0&6b( vgFVBG>( ЦBF( 2( w&F( vW&PFVFvVBf'7BB6V6@'VW"W2F2V.( 06WFF&w&W7FfbV&W'2FV66WW'G2B6V WV7WFfW2g&FRv&@&w&Wv'F66BFRr#B6V7&WF&BrFW'2आR6B( FR#rFV0f"7F6WFFV6W&vW2VrVPg&&VBFRv&BFFWfVB6&RFV"FV0f"fFfR&6W0F&VvFR6'BW6R`FV6w2vV0f6r6WF2F6fPFWfVVB6VvW2( ėBGG&7G2VvvVV@g&VrVR7&70FRv&RvF&WB3W 6VVC( &6v&BFVw&F6fW2vW&#C&VǞ( W&VVVGVV疐BGf67766F`vW&VV7G&6GF7G&'WF'2"7VFGVF7FFV@FBFR6V7F"&VwVF"@FFVBFRF662F6V7@f"W72FFR7GVVB67@f"vGBֆW"bVV7G&6GGVF&wVVBFBFPF662vVB&VV7BVV7G&6G6FG&6֗GFVBFV&fF&R6F2'FRD4FFrFBF0v2FW"f7F"F@v2VvFfVǒffV7FrFP6V7Fb&WfVVR'FPvW"f&2FWfVV@FBv2GfW'6VǒffV7FpFR6V7F"#7&BvW&V6֖07V֗BFRV֒66@FB7&V6VB666G6VVBVf7GW&pB6f"GG&7FVBCf&খfW7FVG2आR7FFVB( ĖFFFF7&V6VB66G@fW7FVG2FRGW7G&Ɩ7bFRvfW&VB0&W76VBvW&( 2VvPƖW7FRFW6B6frFP6VG'#C&W"V"( FRVf7GW&pGW7G'2FRWFV6rvW&( 2V6֖0FVFvFVFƖW VffV7BV6֖27FfGv6G&fW2F&WfVVRf FRvfW&VBFRfVFW&vfW&VB&VƗ6VBF@6VVB&GV7F2R`FR&V2v6vW&06&FfRGfFvR@FW&R2&V6vvP6VBB7Wǒ6VVBF6VG&W2vFg&6( Ф66&FrFfW"FV6FRvW&2vRg&ЦF6VVB'FW"FWBW'FW"V&rF'0BW76VrFR7G&f&VvW6vR6VBb7V&֗762g&Х7V"6&g&6RW 6VBg&FW&6BFR6&&&V2W 6VBg&6WF6 W"6VBg&V7B6@FR6f2"W"6VBg&Ф'FW&6VvBW"6V@g&WW&RBGvW 6VBg&FR֖FFRV7@B'Fg&6( ФW"&V&2FRv&@&( 2F&V7F"b7G&FVwBW&F2g&6&Vv2FW'FvfR77W&6RFBFP'&WGFvB7FGWFvVB6FVRF&FPBV6W&vRFRWFv&ǒ6RFVBFBFPWF&VVBFR 7FVFW'2FR&VƗ6FbFR#3vVFf 7W7F&RFWfVVBBFR766FV@7W7F&RFWfVV@W7F&Ɨ6&VfW'v&2FV2fW7F'0V6VwRF'V@Rw&WvpF&V7F"vW&FWG&WV6'&FG"F&'RvVFW6F6BRBVvvVBfW7F'0FW7F&Ɨ6&VfW'v&7FFR66&FrFv&7FFR2vV6FV@vVw&6ǒFfR&VfW'( FRfW7F '2fR&VV6֖rFW2BfR6VVRFB2VFR&֗6r@2F2ƖvBFBV6W&vV@FW6RfW7F'2F6R@6VRFR7FFRvfW&VB@F67W72( &'Rv2VFVB06r7FFVVB77VVB'FR27W7W'6GPVvGRFRtBWVBF@FVvFR&VfW'&VB6FbFRfW7F'2v2Bv&7FFRRB6f6V@FVF66FW"W7F&Ɨ6pFR&VfW'FW&R&FW"FWfW&vRW7V6ǒFP7FF^( 2FVW67FƖRआR6BFR7FFRvfW&V@6VBW&R'FW'6'GVFW2&fFVB'fW7F'2Fv&G2W7F&Ɨ6pFR&VfW'FR7FFR&'R6VBGW7G'W'2F'&6Rf"6vRFR6V7F"v2W'F6B( vRf7W2৖WF2f"F26WFF&V6W6RF&VR&ƖVP( 2C2W"6VBbFRv&N( 0VF( 2&RVFW"FPvRb#RFRv&N( 2WF0vVVBFR#3vVFf"7W7F&PFWfVVB6G&'WFpFV"VVR6WF2@6rFV"gWGW&RBW'2( FR4Dw2&R6WBbpv&v2FB6VVFV@fW'G&FRV6R@&W6W'fRFRWBf"gWGW&PvVW&F2'#3( &R&FW2FFV &VFV6W76"FR֖VVФFWfVVBv2FP4Dw26fW"'&B&vPbFW&6V7FVB77VW2g&VFrVvW"&FrVFFG&W76pWVƗG7&VFr'2@7W7F&RV6֖2w&wFF&frvfW&6R@FG&W76rv&6VvW07V626ƖFR6vR( ФvW&( 2vr&6FgR2fFfPFf&B77FVF@F6W2fW'FƗW"GR@VFG&fVBVƗG6VVG2BFW"WG2FFP&vB6FR&6Vf60vV"B&R&6V@FV6VG&Ɨ6VBfW'FƗW"@6VVFƖrv&VW6r77FVЧFBF6W2FR&vBWG0FFffW&VBf&6F0vVB'6ƆFW