- DisCos generated N168.7 billion in revenue in August
- They also recorded an energy billing efficiency of 82.4 per cent within the period
- Increased revenue follows the removal of electricity subsidies by the government
The Nigeria Electricity Regulatory Commission (NERC) says electricity distribution companies (DisCos) in Nigeria received a combined revenue of N168.7 billion in August 2024.
According to a fact sheet released by the NERC for August 2024, DisCos billed customers a total of N208.5 billion, while N168.7 billion was received, which represents a collection efficiency rate of 80.91 per cent.
This is a significant improvement given that DisCos lost N25.71 billion over bill collection efficiency in June 2024.
Breakdown of how DisCos collected revenues
According to the fact sheet, Ikeja DisCo recorded the highest revenue for the month, collecting N35.27 billion, with a billing efficiency rate of 104.01 percent.
It is followed by Eko DisCo which had a billing efficiency of 89.04 per cent, having generated N26.37 billion in revenue.
Abuja DisCo occupied the third place as it generated N26.96 billion in revenue and recorded a billing efficiency rate of 80.63 per cent.
From the rear, Jos DisCo reported the lowest collection efficiency among the DisCos, with a rate of 50.69 per cent.
Jos DisCos is followed by Yola and Kaduna DisCos. Yola and Kaduna DisCos recorded collection efficiency rates of 52.06 per cent and 57.16 per cent, respectively.
The three DisCos that occupied the laggards position – Jos, Yola and Kaduna DisCos – collected N1.97 billion, N5.23 billion and N5.2 billion as revenue in August 2024, respectively.
DisCos energy billing efficiency improved in August
According to the report, the energy billing efficiency of the 11 DisCos also improved in August. The DisCos collectively received 2,561.28 Giga watts hour (GWh) of electricity and billed 2,110.53 GWh, which is an energy billing efficiency of 82.4 per cent.
A breakdown of efficiency rate shows that Ibadan DisCo achieved the highest billing efficiency rate of 0.35 per cent by billing 153 GWh out of 160 GWh received.
Ibadan DisCo is followed by Eko and Yola DisCos with billing efficiency rates of 89.87 per cent and 88.74 per cent, respectively.
The three lowest DisCos in terms of achieving energy billing efficiency rates were Enugu, Jos and Kaduna DisCos, which recorded rates of 74.66 per cent, 65.35 per cent and 62.31 per cent, respectively.
Increased revenue collection follows electricity subsidy removal
Since the government halted electricity subsidy payment for electricity feeders categorised as Band A in April 2024 with the subsidy at N140.7 billion, DisCos’ revenue has also increased.
As of September 2024, the monthly electricity tariff subsidy paid by the Federal Government stood at N181.63 billion, increasing from N173.88 billion in August, N163.87 billion in July and N102.30 billion in May 2024, raising concerns that another electricity tariff hike may be in the offing.
Following the subsidy removal, customers in the Band A category, who make up 15 per cent of the population of electricity customers in Nigeria and consume 40 per cent of electricity at a minimum of 20 hours of electricity daily, were made to pay N225 per kilowatt hour (kWh), a 300 per cent increase from the previous N68/kWh.
Musiliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), said the decision was to ensure sustainable energy distribution and reduce subsidies for the 2024 fiscal year by N1.14 trillion in line with the Federal Government’s subsidy realignment.
The tariff was later reduced to N206.80/kWh when the subsidy figure declined to N102.30 billion in May following public outcry from customers, labour unions and manufacturers.
However, when the subsidy figure increased to N158 billion in June, the tariff for Band A customers also increased by N2.70/kWh to N209.50/kWh in July.
The DisCos said the adjustment was necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity and the cost of gas.
DisCos should bear cost of replacing phased-out meters – FCCPC
Meanwhile, TheRadar reported that the Federal Competition and Consumer Protection Commission (FCCPC) says electricity distribution companies (DisCos) should bear the cost of replacing phased-out meters.
The commission also said it is engaging DisCos, the Nigeria Electricity Regulatory Commission (NERC) and other stakeholders with the aim of addressing the ongoing concerns surrounding the phase-out of Unistar prepaid meters by DisCos.
