Amid complaints of low power generation, electricity distribution companies in Nigeria raised their monthly revenue from N95bn in January to N100bn in March 2024, according to data released by the Nigerian Electricity Regulatory Commission (NERC).
The data revealed that N97bn in revenue was generated in February.
Despite a significant drop in power supply due to gas shortages, the rise in revenue was significant.
In January, the distribution companies (Discos) received 2,577 gigawatt-hours (GWh) of power and billed 2,072GWh, achieving an 80% billing efficiency. The total billing amounted to N130.9bn, while the collected revenue stood at N95bn, representing a 72% collection efficiency. The allowed average tariff rate for January was N59.89k per kilowatt-hour, with an actual average collection of N36.97k/KWh.
In February, the total energy received by the Discos dropped to 2,149GWh, with 1,759GWh billed, resulting in N97bn in revenue from N113bn in billings.
In March, the Discos received 2,468GWh of energy and billed 1,975GWh, generating N100bn from N126.5bn in billings.
The rise in revenue is traceable to an increase in tariff, as the NERC said the allowed average tariff for March was N62.73k/KWh while the actual average collection was N40.69k/KWh.
In March, the Ikeja Disco had the highest revenue of N20bn, followed by Eko and Abuja Discos with N16.7bn each.
Ibadan Disco generated N10bn during the period under review, while Benin and Enugu raked in N7.5bn and N6.9bn, respectively, according to NERC.
Also, the newly inaugurated Geometric Power, otherwise known as Aba Power, generated N1.1bn while Yola Disco earned N1.5bn.
Within the first quarter of 2024, the Discos were said to have generated N292bn.
In January, Nigeria experienced nationwide blackouts due to gas shortages, as gas companies halted supplies to electricity-generating companies over unpaid debts.
Power generation, which had been around 4,000MW, plummeted to below 2,500MW, significantly impacting the distribution companies’ ability to provide electricity to consumers.
The Discos apologized to their customers, stating, “We cannot give what we don’t have.”
Amid ongoing gas shortages, the NERC eliminated electricity subsidies in Band A areas, increasing the tariff to N206 per kilowatt-hour.
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