Economy News Extra Latest News Power/Electricity Revenue Tax

NERC Reports 57% Revenue Increase In Q1, 2020

The Nigerian Electricity Regulatory Commission (NERC) has reported that its total revenue increased by 57 per cent in the first quarter of 2020.

It attributed the improved revenue accruals to operating levies and Internally Generated Revenue (IGR) sources

During the quarter, the power sector regulatory agency disclosed that its total expenditure rose to N1.94 billion, from N1.74billion in the preceding quarter.

The commission stated: “During the first quarter of 2020, the total revenue generated by the commission was N3.25 billion representing an increase of 57.31 per cent from the revenue recorded during the fourth quarter of 2019.

“The reported increase in the revenue was due to the 58.08 per cent increase in the revenue realised from the operating levy (i.e., market charges) and 22.31 per cent increase in other internally generated revenue realised during the first quarter of 2020.

“This indicates that the total expenditure of the commission rose to N1.94billion from N1.74 billion incurred in the preceding quarter. A comparison of the revenue and expenditure of the commission in the quarter under review indicates lesser expenditure incurred when compared to actual cash receipts.

“This shows a positive net cash flow of N1.32 billion. However, the commission still has existing liabilities of N0.23billion as at the end of the first quarter of 2020.

“The operating levy and OIGR which stood at N3.20 billion and N54.50 million respectively in the first quarter of 2020 were respectively 58.08 per cent and 22.31 per cent higher than the amount realised in the preceding quarter”, it added.

According to the commission, the share of electricity generation by fuel sources for the first quarter of 2020 and the fourth quarter of 2019 continues to dominate the electricity generation mix accounting for 73.45 per cent of the electricity generated during the first quarter of 2020.

It reported that this implied that approximately 7.35kWh of every 10kWh of electric energy generated in the quarter under review came from gas, adding that relative to the preceding quarter there is 6.43 percentage points decline in the share of electric energy generated from hydro which accounted for 26.55 per cent of the total energy output.

The commission stated that the declining share of hydro generation was due to low rainfall and water management at the hydropower stations during the quarter.

The commission, however, noted with serious concern the low security of supply associated with the country having just two energy mixes significantly dominated by gas fuel and cautioned that acts of vandalism of gas pipelines could result in serious grid instability, as experienced in 2016.

Spread the love

Leave a Reply

Your email address will not be published.