All the companies showed varying losses. However, PWC raised doubts over the continued operation of Jos and Enugu distribution companies
Nigeria’s 11 distribution companies have recorded losses of over N1 trillion in two years. This is according to its audited ddocuments which were submitted to the Nigerian Electricity Regulatory Commission (NERC), by auditing firms PriceWaterhouseCoopers (PWC) and Deinde Odusanya and Co.
All the companies showed varying losses. However, PWC raised doubts over the continued operation of Jos and Enugu distribution companies.
Reacting to the report of the auditors, Chris Okonkwo, National President, Senior Staff Association of Electricity and Allied Companies (SSAEAC), said losses were not this heavy before the privertisation of the generation and distribution companies. He said the discos are asking for tariff increase, which was not part of their initial agreement with the government:
“The owners of these companies, both GenCos and DisCos have failed in the level of efficiency. Today, the DisCos are demanding for tariff increase which was not part of their agreement with government,” adding that80% ofrevenue collectors in the Power Holding Company of Nigeria (PHCN) have been sacked.”
Below is a summary of the results sent by the auditors to NERC for five Discos:
Benin Electricity Distribution Company (BEDC), made a loss of N11.6bn loss in 2016. It earned N50.4bn. The company had recorded a loss of N4.4bn in 2015 and made an income of N37bn in the same year.
Eko Electricity Distribution Company (EKEDC), recordeddd a loss of N28.66bn. Its revenue increased to N56.5bn against N6.58bn reported in 2015. The company earned more cash due to an increase in energy supply. The cost of the electricity increased however, because it was sourced from embedded power generated by Egbin power PLC and Paras Energy. The company’s liabilities for the year in view exceeded its liabilities by N21.8 billion. Its net asset stood at N3.1bn.
Enugu Electricity Distribution Company (EEDC), lost N31.1bn in 2016. It losses were lower in 2015 at N26.4bn. In revenue generation, it reported N49.8bn and N45.6bn for 2015.
Ibadan Electricity Distribution Company (IBEDC), lost N24.9bn in 2016 after bringing in N61.3bn in the same year; The company lost N11.2bn in 2015 and made N61.4bn revenue. Its liability outpaces its assets by N38.05bn in 2016 in contract with a debt of N2.68bn in 2015.
Jos Electricity Distribution Company (JEDC), incurred a loss of N16.8 billion in the 2016 financial year and N22.2bn liabilities. N11bn revenue and loss profit of N7.6bn.
Kaduna Electricity Distribution Company (KEDC), reported N17.9bn loss in 2016 against N12bn the previous year. It recorded N42.8bn revenue in 2016 and N33.5bn in 2015.
Yola Electricity Distribution Company’s (YEDC’s), liabilities exceeded its assets by N8.5bn in 2016 and N0.57bn in 2015. The debts were down to long term debts and unpaid bills by Ministries, Departments and Agencies (MDAs).