The Nigerian Electricity Regulatory Commission (NERC) reported that distribution companies (DisCos) generated N431.16 billion between April and June of 2024.
According to its latest report for the second quarter (Q2) of 2024, NERC stated that revenues from customers in Q2 2024 rose by 47.84 percent from N291.62 billion recorded in Q1.
“The total revenue collected by all DisCos in 2024/Q2 was ₦431.16 billion out of ₦543.64 billion billed to customers,” NERC said. “This translates to a collection efficiency of 79.31% which represents an increase of +0.20pp when compared to 2024/Q1 (79.11%).”
NERC highlighted that Ikeja and Eko DisCos achieved the highest collection efficiencies of 94.67 percent (N87.36 billion) and 88.03 percent (N75.33 billion), respectively.
“Conversely, Yola DisCo recorded the lowest collection efficiency of 55.67% (N4.78 billion),” NERC added. “A comparison of DisCos performance in 2024/Q1 and 2024/Q2 showed that six (6) DisCos recorded improvements in collection efficiency in 2024/Q2 when compared to 2024/Q1 with Yola DisCo recording the highest increase of +12.64pp.”
“Conversely, five (5) DisCos recorded declines in collection efficiency with Kaduna having the most significant decrease (-10.04pp) during the period.
NERC disclosed that the total upstream invoice payable by DisCos amounted to N399.53 billion, which included N343.76 billion for DisCos remittance obligations (DRO)-adjusted generation costs from Nigerian Bulk Electricity Trading (NBET) and N55.77 billion for transmission and administrative services by the market operator (MO).
“Out of this amount, the DisCos collectively remitted a total sum of ₦318.65 billion (₦271.87 billion for NBET and ₦46.78 billion for MO) with an outstanding balance of ₦80.88 billion,” the commission said.
“This translates to a remittance performance of 79.76% in 2024/Q2 compared to the 96.93% recorded in 2024/Q1.”
On April 3, NERC approved an increase in electricity tariffs for customers under the Band A classification.
The commission noted that customers in this classification, who receive 20 hours of electricity supply daily, would pay N225 per kilowatt (kW) starting from April 3, up from N66.
As a result, NERC estimated that the approved tariff would reduce electricity subsidy for the 2024 fiscal year by around N1.14 trillion.
