From Isaac Anumihe, Abuja

The total revenue collected by all DisCos in 2023/Q4 was ₦294.95 billion out of ₦399.69 billion billed to customers.

This was contained in Nigerian Electricity Regulatory Commission (NERC) 2024 third quarter report.

The figure translates to a collection efficiency of 73.79 per cent which
represents a decrease of -2.77pp when compared to 2023/Q3
(76.56 per cent).

“Over previous quarters, it has been observed that when there is an
increase in energy offtake, there is usually a decrease in distribution companies (DisCos’) billing
and collection efficiencies for the same period. This is probably
because DisCos send more energy to areas where they increase
commercial losses. The inverse relationship between energy offtake by DisCos and billing as well as collection efficiency may pose
challenges to the long-term growth of the Nigerian Electricity Supply Industry (NESI)” the report said.

The document also disclosed that the total energy received by all DisCos in 2023/Q4 was 8,198.65GWh while the energy billed to end-use
customers was 6,432.22GWh, translating into an overall billing
efficiency of 78.45 per cent. This represents a decrease of -0.64pp relative to the 79.09 per cent recorded in 2023/Q3.

According to NERC, all the DisCos failed to achieve the efficient loss targets allowed in their
tariff in 2023/Q4. This translates into an inability to collect the
revenues that are required to finance the sustainable long-term
operations of the business while also providing reasonable returns for investors.

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On market remittance, the commission said that in 2023/Q4, the cumulative upstream invoice
payable by DisCos was ₦270.05 billion, consisting of ₦223.32 billion for generation costs from Nigeria Bulk Electricity Traders (NBET) and ₦46.73 billion for transmission and administrative services by the Market Operator (MO).

“Out of this amount, the DisCos collectively remitted a total sum of ₦188.70 billion (₦156.15 billion for NBET and ₦32.55 billion for MO) with an outstanding balance of ₦81.35 billion. This translates to a remittance performance of 69.88 per cent in 2023/Q4 compared to the 75.91 per cent
(remittance of ₦158.43 billion out of the total invoice of ₦208.70
billion) recorded in 2023/Q3.

Meanwhile, in 2023/Q4,
none of the four international customers serviced by the MO made
any payment against the $12.02 million invoice issued to them by the
MO for services rendered in 2023/Q4.

“It is noteworthy that some international customers made payments during 2023/Q4 for outstanding MO
invoices from previous quarters” it said.

NERC said that one incident of grid collapse was recorded in 2023/Q4.

“The incident
occurred on December 11, 2023, and the immediate cause was
the simultaneous tripping of four 330kV circuits and the separation
of four power plants: Egbin, Olorunsogo PH I, & II and Paras power plants, along the western axis of the grid.


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