DisCos rake N116.9bn revenue in Q1, says NERC

The 11 electricity Distribution Companies operating in Nigeria realised N116.9bn from their customers in the first quarter of 2019, out of the total billing of N182.8bn, Nigerian Electricity Regulatory Commission Q1, 2019 report revealed.

The new report revealed that despite the increase in the amount of energy received by DisCos and a higher billing efficiency recorded relative to the preceding quarter, there was a decline of 0.5 per cent in the total revenue collected in Q1, 2019 when compared to N117.5bn collected in the last quarter of 2018.

The NERC Q1 report, which was obtained on the regulator’s official website on Thursday, further showed that the overall collection efficiency for all DisCos decreased to 64 per cent in the Q1 representing a four percentage point decrease from the 68 per cent collection efficiency recorded in Q4, 2018.

“The collection efficiency implies that for every N10 worth of energy billed to customers by DisCos in the first quarter, N4 remained unrecovered from customers as and when due.”

In appraising individual performance of the DisCos, the commission said that Ikeja DisCo had the highest collection efficiency of 84 per cent, followed by Eko DisCo with 80.3 per cent.

It also noted that on the contrary, Kaduna DisCo had the lowest collection efficiency of 39.6 per cent.

Ikeja and Kaduna DisCos retained the same ranking during Q4,2018.

“A major factor contributing to low collection efficiency is customers’ dissatisfaction with estimated billing which often resulted in unwillingness to pay. The commission, during the quarter, continued to monitor the procurement of Meter Asset Providers by DisCos in line with the guidelines provided in the MAP Regulations issued by the commission,” it stated.

On the market remittance, the report disclosed that the liquidity challenge in the electricity industry continued to manifest during Q1, 2019.

NERC added that this was evidence in the DisCos’ special and international customers’ level of remittances to Nigerian Bulk Electricity Trading and Market Operator, as compared with the invoices received for energy purchased from NBET and those received for administrative services from MO.

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