DisCos Earn N199.90 Billion from Consumer

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CEM REPORT, ENERGY | The average collection efficiency of the electricity distribution companies (DisCos) in Nigeria stood at 77.38% in Q1 2022.

According to Nigerian Electricity Regulatory Commission (NERC) revenue earned during the period was N199.90 billion, out of N295.69 billion billed to customers.

NERC in its first quarter 2022 report said DisCos achieved a billing efficiency of 77.38% in the review period.

“The total energy received by all DisCos in 2022/Q1 was 7,300.05GWh while the power bill to the end-use customers was 5,649.21GWh indicating an average billing efficiency of 77.38%. This billing efficiency is an increment of +1.02 pp from the 76.56% recorded in Q4’21

“The total revenue collected by all DisCos in Q1’22 was ₦199.90 billion out of ₦295.69 billion billed to customers —this corresponds to a collection efficiency of 67.36%, representing a 1.98 pp reduction compared to Q4’21 where the average collection efficiency was 69.34%. In monetary terms, although the billing in 2022/Q1 reduced by ₦7.41 billion (-2.44%), revenue collections reduced at a higher rate – ₦10.98 billion (-5.22%).”

The report declared Discos had commercial losses of 47.88% comprising aggregate technical and commercial loss (23.44%) and collection loss (30.66%).

“The ATC&C loss increased by +0.97 pp compared to 2021/Q4 (46.91%). All DisCos did not meet their allowed ATC&C loss targets as specified in the MYTO —this means that all DisCos exceeded their efficient loss targets and thereby could not earn the revenue requirement upon which their approved tariffs for the period were set.”

Additionally, the NERC warned that consistently incurring these inefficient losses could prevent the DisCos from meeting their upstream market obligations and have adverse effects on their long-term financial positions.

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It is worth noting that there were twenty-six (26) grid-connected power stations in Q1’22 consisting of nineteen (19) gas, four (4) hydro, two (2) steam, and one (1) gas/steam-powered plants.

“The plants’ average available generation capacity during the quarter was 4,712.34MW representing a 13.78% decrease (-753.38MW) compared to 5,465.72MW recorded in Q4’21.

 

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