Nigeria’s 11 electricity distribution companies (DisCos) generated N199.90 billion in combined revenue for the first quarter of 2022, a quarterly report by the Nigerian Electricity Regulatory Commission (NERC) has revealed.
A document released by the regulator on Friday said a total of N199.90 billion was collected by all DisCos in the first quarter of 2022 out of N295.69 billion billed to customers.
This translates to a collection efficiency of 67.36 percent, which represents a reduction of 1.98 percentage points compared to Q4 2021 when the average collection efficiency was 69.34 percent.
In monetary terms, the report said that although the bill in Q1 2022 decreased by N7.41 billion (-2.44 percent), revenue collection decreased at a higher rate of 5.22 percent.
N10.98 billion.
The regulator said DisCos use technology and operational procedures to improve billing and collection performance to avoid long-term financial challenges.
“This can include holistic energy accounting procedures, customer and infrastructure metering, etc.,” he said.
Remittance
On the market remittance, the regulator said the combined invoices of Nigeria Bulk Electricity Trading Plc (NBET) and Market Operator (MO) for Discos in Q1 2022 was N205.63 billion.
It said the invoice was divided into generation cost (N164.86 billion), and transmission/administration services (N40.77 billion).
He said out of the amount, the DisCos collectively remitted a total sum of N135.69 billion. But with a balance of N69.94 billion, this equates to a remittance performance of 65.99 percent during the quarter.
The report said the poor remittances were a direct result of Disco’s record higher performance than Aggregate Technical, Commercial and Collections (ATC&C).
In addition, the report notes that there are 26 power plants connected to the grid in Q1 2022 which include 19 gas, four hydro, two steam, and one gas/steam power plant.
It said the average generation capacity of plants available during the quarter was 4,712.34MW which represents a decrease of 13.78 percent (-753.38MW) compared to 5,465.72MW recorded in 2021/Q4.
“The amount of energy received by all Discos in 2022/Q1 was 7,300.05GWh, while the power billed to end-use customers was 5,649.21GWh showing an average billing efficiency of 77.38 percent.
“The efficiency of this bill increased by +1.02 pp from the 76.56 percent recorded in 2021/Q4,” he said.
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