DisCos Revenue Falls by 5% as Erratic Power Supply Leads to Lower Electricity Bill Collection
- NERC's latest report shows a decline in DisCos revenue for October 2024, 5% down from the previous month
- The report also shows that the electricity bills from the DisCos to its customers fell by 5.4%, even though revenue collection improved
- This may not be unconnected to the erratic power supply that has plagued Nigeria in 2024 due to constant grid collapses
CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now!
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
A new report shows that revenue for electricity distribution companies (DisCos) operating in Nigeria dropped 5%.
From N171.58 billion collected as revenue in September 2024, DisCos' total revenue dropped 5% to N163.07 billion the next month.
Source: Twitter
The latest data from the Nigerian Electricity Regulatory Commission (NERC) shows that the total amount DisCos charged customers as electricity bills also dropped 5.4% from N225.8 billion in September 2024, to N213.62 billion in October 2024.
Nigerians experienced an epileptic power supply in 2024, thanks to several blackouts caused by the frequent collapse of the national grid.
This may not be unconnected to the lower electricity bills and decline in DisCos revenue.
Recall that Aba Power recently became the first DisCo to achieve one month of uninterrupted power supply to its customers and set the pace for other DisCos to follow.
Improved revenue collection
The distribution companies recorded improved revenue collection by up to 76.33%. This means that the DisCos collected more than 76% of the electricity bills from customers.
Billing efficiency also rose from 82.36% in September 2024 to 84.21% in October 2024. This deduces from the fact that 2,361.43 GWh was the total energy received, while 1,988.52 GWh was the total energy billed.
Regarding revenue recovery performance, the NERC report showed that whereas the average allowed tariff for October was N115.74 per kWh, the actual collection was N86.62 per kWh. This translates to 74.84% recovery efficiency.
Operators in the power industry have frequently cited the sector's liquidity issues to be a result of shortfalls in billing collections and low investment in the Nigerian power sector.
However, many electricity consumers, particularly those on the estimated billing system, argue that they are being overcharged, claiming they pay for 'darkness' due to an unreliable power supply.
To resolve this issue, NERC issued stiffer penalties for DisCos that fail to meet their KPIs.
Enforcing performance among DisCos
Legit.ng reported recently that NERC issued an order titled Addendum 1 on Performance Monitoring Framework for Distribution Companies, focusing on ensuring that DisCos deliver on already issued KPIs.
The order took effect on December 30, 2024, and mandated DisCos to deliver on energy supply and customer complaint resolution, among other things, or face penalties.
The penalties extend beyond the DisCos to affect key management team officers, including the head of customer service and the chief finance officer.
For DisCos that failed to meet the KPIs, these executives could have their licenses seized, in addition to other fines on the DisCo itself.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
