Discos generated N294bn as FG paid N253.7bn subsidy in Q4 2023
The 11 electricity distribution companies (DisCos) collected the sum of N294.95bn revenue out of the N399.69bn billed to their customers in the fourth quarter of 2023, a report by the Nigerian Electricity Regulatory Commission (NERC) has shown. The report stated that the revenue collected by the DisCos translated to a collection efficiency of 73.79 per […]
FILE: 3D Electric powerlines over sunrise
The 11 electricity distribution companies (DisCos) collected the sum of N294.95bn revenue out of the N399.69bn billed to their customers in the fourth quarter of 2023, a report by the Nigerian Electricity Regulatory Commission (NERC) has shown.
The report stated that the revenue collected by the DisCos translated to a collection efficiency of 73.79 per cent.
It indicated that when compared to the total revenue collected by all DisCos in the previous quarter, N267.61bn out of the N349.55bn billed to customers, it was a 2.77 per cent reduction of 76.56 percent collection efficiency.
It noted that Yola DisCo recorded the highest decrease of 10.31 per cent with Port Harcourt DisCo recording an improved collection efficiency of 0.30 per cent during the period.
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The report blamed the loss of revenue to lack of meters in major areas that DisCos operate.
It added that during the period, the federal government incurred a subsidy obligation of N252.76bn, an average of N84.25bn per month, which is an increase of N48.16bn (23.54 per cent) compared to the N204.60bn, average of N68.2bn per month, incurred in 2023/Q3.
It showed that the increase is due to the government’s policy to harmonise exchange rates without approving an increase in the electricity tariff.
It noted that none of the four international customers Nigeria supplied electricity to made payment against the cumulative invoice of $12m issued by the Market Operator (MO) for services rendered.
It however revealed that some international customers made payments of $3.92m outstanding invoices from previous quarters.
It added that there were no remittances by bilateral customers against the cumulative invoice of N1.9bn issued to them by the MO for services rendered while its special customer, Ajaokuta Steel Co. Ltd and the host community, did not make any payment towards the N72m to NBET and N7 to MO invoices received in 2023/Q4.
The report showed an average of N42.11 out of every N100.00 worth of energy received by a DisCo unrecovered due to a combination of distribution network losses, energy theft, low revenue collection and unwillingness of customers to pay their bills.
It noted that this loss termed Aggregate Technical Commercial and Collection (ATC&C) loss, recorded across all 11 DisCos in 2023/Q4 was 42.11 per cent, which comprised 21.55 per cent in technical and commercial losses, and 26.21 per cent in collection loss.