NESI Revenue Flow Protocol 2 DisCos are Collection Agents for the Entire Industry Customer payments to Discos Discos Regulator Bulk trader Market Operator etc Transmission Company Power Generation ID: 814497
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Slide1
1
How Power Reaches Households
Slide2NESI Revenue Flow Protocol
2DisCos are Collection Agents for the Entire IndustryCustomer payments to Discos
Discos
Regulator, Bulk trader, Market Operator etc.
Transmission Company
Power Generation
Gas Suppliers
N
N
NBET
11%
57%
24%
4%
100%
4%
CBN
Slide3Avg. Billing vs Avg. Collection – Quarter 4, 2015
ABUJABENINEKOENUGUIBADAN
IKEJA
PH
YOLA
KANO
JOS
KADUNA
57%
66%
71%
63%
65%
70%
51%
50%
50%50%
49%
Rates of Collection
Slide4S/N
NAME OF DISCOSAMOUNT (IN BILLIONS)1IKEJA5,7862BENIN4,1063PH2,750
4
KADUNA
8,105
5
IBADAN
5,887
6
YOLA
2,003
7
ENUGU
6,772
8
ABUJA
8,659
9
JOS5,311
10KANO1,194
11EKO8,336
TOTAL
58,909
MDA Debts as of December 2015
Slide5Average Residential Tariffs - 2016
5
Slide6Historically Tariffs in Nigeria Have Been Below Cost-reflective Levels
6
Slide7The 10-Year Tariff Sculpt for Industry
7
Slide8Retail tariffs support the whole industry….
Cost-reflective tariff in 2016:57% Gencos24% Discos15% TCN and others4% CBN repaymentIncome from tariffs expected to cover 84% of these costs – gap due to sculpting.
2015/16 shortfall will not begin to be recovered until sculpted tariff above cost-reflective
8
Slide9A portion of the increase in the energy tariffs is due to the complete removal of fixed charges
The blue area indicates the increase in the energy tariff due to the removal of fixed charges.9
Slide10Metered Vs Unmetered Customers
Metering CAPEX to be Funded
Slide11ATC&C Loss Reductions – the Good News!!
DisCos’ ATC&C loss reductions, in combination with forecasted improvements in power supply, will result in a reduction of the tariff over time.11
Slide12Industry Average Collection Losses Evolution12