Ikeja Electric leads DisCos’ N162b revenue

In July 2024, twelve distribution businesses of electricity (DisCos) under the Nigerian Electricity Supply Industry (NESI) brought in N162 billion in income.

In a report titled "Commercial Performance of Distribution Companies (DisCos)," released yesterday, the Nigerian Electricity Regulatory Commission (NERC) revealed that the energy distributors were unable to collect N34.96 billion, or 17.74 percent of the total bills, during the period under review.

For the month, the collection efficiency was 82.26%. With a collection efficiency of 115.45%, Ikeja DisCo had the best performance, while Kaduna DisCos had the lowest, at 58.65%.

The reason for July's collection of more than 100% was unpaid debts from the previous month.

Regarding revenue recovery efficiency, NERC reported that, for the month under review, the permissible average tariff per kilowatt-hour was N115.74, however actual collection was N83.77. This suggests an average subsidy of 31.97 kw/h, or N64.92 million, for the total 2,030.75Gwh (2,030,750MW).

According to NERC, the recovery efficiency in July 2024 was 72.38 percent.
In terms of energy billed and billing efficiency, NERC also disclosed that the total energy received was 2,520.82 Gigawatt hours (Gwh), or 2,520,820 MW, while the total energy billed was 2,030.75 GWh, or 2,030,750 MW.

NERC reports that during the reviewed period, the businesses' billing efficiency was 80.56%.

Aba DisCo topped the list in terms of billing efficiency, having scored 96.17 percent. The company received 16.99 GWh (16,990 MW) and billed 16.34 GWh (16,340 MW).

The fact that the DisCos operate in a ring-fenced business environment is remarkable.

Ibadan DisCo came next, recording 89.76 percent billing efficiency with 310.63 Gwh (310,630 MW) received and 299.21 Gwh (299,210 MW) billed.

With a billing efficiency of 92.63Gwh (92,630MW) compared to 161Gwh (161,000MW) received, Kaduna DisCo had the lowest billing efficiency at 57.53 percent.

NERC reports that as of July 2024, Aba DisCo had the lowest energy output in the industry at 16.99Gwh (16,990MW), while Abuja Disco obtained the greatest energy output in the business at 379Gwh (379,000MW).