Richard Ginika Izuora
The 11 Electricity Distribution Companies, DisCos, in Nigeria recorded marginal improvement in revenue generation in the Q2, 2022.
Oriental News Nigeria reports that collection efficiency of the distribution companies improved due to efforts in blocking leakages in the collection system.
The total revenue collected by all DisCos in 2022/Q2 was ₦188.29 billion out of ₦265.68 billion billed to customers and this corresponds to a collection efficiency of 70.87 per cent which represents a
1.53 per cent increase compared to 2022/Q1 where the average collection efficiency was 69.34 per cent.
In monetary terms, both the billings and collections reduced at almost the same rate when compared with 2022/Q1—billing
reduced by ₦30.02 billion (-10.15%) and collections reduced by ₦21.88 billion (-10.41%).
The Nigeria Electricity Regulatory Commission, NERC, has emphasised the imperative for DisCos to employ technologies and operational procedures to increase both billing and collection performances, in order to forestall long term financial challenges.
These could include holistic energy accounting procedures, customer and Infrastructure metering, among others.
Information obtained from NERC website indicates that Aggregate Technical, Commercial and Collection (ATC&C) Losses in 2022/Q2 was 44.60 per cent comprising technical and commercial loss (21.83%) and collection loss (29.13%). The ATC&C loss decreased by 3.28 per cent compared to 2022/Q1 (47.88%). All DisCos did not meet their
allowed ATC&C loss targets as specified in the Multi Year Tariff Order, MYTO, indicating that all DisCos did not meet their loss reduction targets, and were therefore unable to earn the revenue requirement upon which their approved tariffs for the period were set.
The NERC observed that persistent inability in meeting loss reduction targets could prevent DisCos from meeting their upstream market obligations and adversely affect their long-term financial positions.
Also, the total energy rceived by all DisCos in 2022/Q2 was 6,344.14GWh while the energy billed to end-use customers was 4,959.53GWh, indicating an average billing efficiency of 78.17 per cent. This represents an increment of 0.79 per cent from the 77.38 per cent recorded in 2022/Q1.