FIRST QUARTER 2019 NERC QUARTERLY REPORTS NIGERIAN ELECTRICITY REGULATORY COMMISSION Electricity on Demand QUARTERLY REPORT FIRST QUARTER 2019 NIGERIAN ELECTRICITY REGULATORY COMMISSION PLOT 1387| CADASTRAL ZONE A00| CENTRAL BUSINESS DISTRICT| P.M.B. 136| GARKI| ABUJA www.nerc.gov.ng 1 [NIGERIAN ELECTRICITY REGULATORY COMMISSION] FIRST QUARTER 2019 NERC QUARTERLY REPORTS © 2019 Nigerian Electricity Regulatory Commission NERC quarterly report is prepared in compliance with Section 55(3) of the Electric Power Sector Reform (EPSR) Act 2004, which mandates the Commission to submit the quarterly reports of its activities to the President and the National Assembly. The report analyses the state of the Nigerian electricity industry (covering both the operational and commercial performance), regulatory functions, consumer affairs as well as the Commission’s finances and staff development. The report is directed at a wide spectrum of readers including energy economists, electrical engineers, financial and market analysts, potential investors, government officials and institutions, the private sector as well as general readers. NERC quarterly report is freely available to stakeholders of the Nigerian Electricity Supply Industry (NESI), government agencies and corporations. Individuals can also access any particular issue freely from the Commission’s Website. Please direct all inquiries, comments and suggestions on the report to: The Commissioner Planning, Research and Strategy Division Nigerian Electricity Regulatory Commission Plot 1387 Cadastral Zone A00 Central Business District P.M.B 136, Garki, Abuja Nigeria NERC website: www.nerc.gov.ng Contact Centre: Tel: +234 (09) 462 1400, +234 (09) 462 1410 Email: [email protected] 2 [NIGERIAN ELECTRICITY REGULATORY COMMISSION] FIRST QUARTER 2019 NERC QUARTERLY REPORTS EDITORIAL NERC quarterly report is prepared by the Planning, Research &Strategy (PRS) Division of the Commission led by Dr Musiliu. O. Oseni (Commissioner, PRS) with support from other divisions overseen by Prof. James Momoh (NERC Chairman, Office of the Chairman), Sanusi Garba (Vice Chairman & Commissioner, Market Competition & Rates), Prof. Frank N. Okafor (Commissioner, Engineering, Performance & Monitoring), Nathan R. Shatti (Commissioner, Finance & Management Services), Dafe C. Akpeneye (Commissioner, Legal, Licencing & Compliance) and Dr Moses Arigu (Commissioner, Consumer Affairs). The following are members of the PRS division as of 15 June 2019: 1. Dr Musiliu O. Oseni Commissioner, Planning, Research &Strategy 2. Anthony Akah General Manager, Research 3. Bassey Ayambem General Manager, Corporate Planning & Strategy 4. Dr Chikwerem Obi Assistant General Manager 5. Dr Abdussalam Yusuf Assistant General Manager 6. Iko Bulus Assistant General Manager 7. Zubair B. Zubair Assistant General Manager 8. Umar Muhammed Principal Manager 9. Rukaiyattu Sambo Principal Manager 10. Chigozie Azikwe Senior Manager 11. Oluseye Akinboyewa Manager 12. Fatima Abatemi Usman Manager 13. Aniefiok N. Nyaknno Assistant Manager 14. Elizabeth B. Adewale Analyst II 15. Dr Ibrahim A. Tajudeen Senior Manager 16. Abdul-Azeez Abdul-Fatai Junior Technical Assistant 3 [NIGERIAN ELECTRICITY REGULATORY COMMISSION] FIRST QUARTER 2019 NERC QUARTERLY REPORTS CONTENT LIST OF TABLES .............................................................................................................. 5 LIST OF FIGURES ............................................................................................................ 6 LIST OF ABBREVIATIONS ............................................................................................ 7 1. EXECUTIVE SUMMARY ........................................................................................ 8 2. STATE OF THE INDUSTRY ................................................................................. 21 2.1. Operational Performance ....................................................................................... 22 2.1.1. Electricity Generation ........................................................................................... 22 2.1.2. Availability Factor and Average Generation of Power Plants ......................... 24 2.1.3. Generation Mix ..................................................................................................... 26 2.1.4. Grid Performance ................................................................................................. 27 2.2. Commercial Performance....................................................................................... 32 2.2.1. Energy Received and MYTO Load Allocation .................................................. 32 2.2.2. Revenue and Collection Efficiency ..................................................................... 35 2.2.3. Aggregate Technical, Commercial and Collection (ATC&C) Losses .............. 37 2.2.4. Market Remittance ............................................................................................... 39 3. REGULATORY FUNCTIONS .............................................................................. 44 3.1. Regulations and Orders of the Commission ...................................................... 45 3.2. Licences and Permits Issued ................................................................................ 45 3.3. Certification of Metering Service Providers ....................................................... 46 3.4. Eligible Customer Applications under Evaluation ............................................ 47 3.5. Public Consultation on Regulations.................................................................... 50 3.6. Compliance and Enforcement ............................................................................. 51 3.7. Litigation ............................................................................................................... 51 4.1. Alternative Dispute Resolution ........................................................................... 52 4. CONSUMER AFFAIRS ......................................................................................... 53 4.2. Consumer Education and Enlightenment .......................................................... 54 4.3. Metering of End-use Customers ......................................................................... 54 4.4. Customers Complaints ......................................................................................... 56 4.5. Forum Offices ....................................................................................................... 58 3.8. Health and Safety ................................................................................................. 59 5. THE COMMISSION ............................................................................................... 61 5.1. Financial Report .................................................................................................... 62 5.2. Capacity Development ......................................................................................... 63 4 [NIGERIAN ELECTRICITY REGULATORY COMMISSION] FIRST QUARTER 2019 NERC QUARTERLY REPORTS LIST OF TABLES Table A: System Collapse in 2019/Q1 and 2018/Q4 .................................................... 10 Table 1: System Collapse in 2018/Q4-2019Q1 ............................................................... 28 Table 2: Energy Received and Billed by DisCos in 2018/Q4–2019/Q1 ....................... 33 Table 3: Revenue Performance of DisCos in 2018/Q4-2019/Q1 .................................. 36 Table 4: ATC&C Losses (%) for DisCos in 2018/Q4-2019/Q1 ..................................... 38 Table 5: DisCos Quarterly Remittances to NBET and MOs in 2019/Q1 ..................... 40 Table 6: Generation Licences and Permit Issued in 2019/Q1....................................... 46 Table 7: Certification of Meter Service Providers in 2019/Q1 ...................................... 46 Table 8: Customers Metering Status by DisCos as of December 2018 ......................... 55 Table 9: Complaints Received and Resolved by DisCo in 2019/Q1 ............................ 56 Table 10: Health and Safety (H&S) Reports in 2019/Q1 & 2018/Q4 ........................... 59 Table 11: Quarterly Revenue & Expenditure of the Commission in 2019/Q1 ........... 62 Table 12: Training and Workshops Attended in 2019/Q1 ........................................... 63 Table I: Energy Received and Billed by DisCos in 2018/Q4-2019/Q1 ........................ 65 Table II: Revenue Performance by DisCos in 2018/Q4-2019/Q1 ................................ 66 Table III: DisCos Invoices & Remittances to MO in 2018/Q4-2019/Q1 ...................... 67 Table IV: DisCos Invoices & Remittances to NBET in 2018/Q4-2019/Q1 .................. 68 Table V: DisCos Invoices & Remittances to NBET & MO in 2018/Q4-2019/Q1 ........ 69 Table VI: Categories of Customer Complaints by Discos in 2019/Q1 ........................ 70 Table VII: Lists and Addresses of NERC Forum Offices as at March 2019 ................. 71 Table VIII: Complaints Received and Resolved by Forum Offices in 2019/Q1 ......... 72 Table IX: Monthly Revenue & Expenditure of the Commission in 2019/Q1 ............. 73 5 [NIGERIAN ELECTRICITY REGULATORY COMMISSION] FIRST QUARTER 2019 NERC QUARTERLY REPORTS LIST OF FIGURES Figure A: Collection and Remittance (%) by DisCos in 2019/Q1 ................................ 11 Figure B: Market Remittance (%) by DisCos Adjusted for Tariff Shortfall – 2019/Q1 ..........................................................................................................................................