Amid persistent complaints about low power generation, Nigeria’s electricity distribution companies (Discos) successfully increased their monthly revenue to N100 billion in March 2024.
This milestone comes despite the country experiencing significant power supply challenges due to ongoing gas shortages.
According to data released by the Nigerian Electricity Regulatory Commission (NERC), Discos’ revenue saw a steady rise from N95 billion in January to N97 billion in February, and N100 billion in March.
This increase in revenue coincides with a period of reduced power supply, attributed to the gas supply crisis.
In January, Discos received 2,577 gigawatt-hours (GWh) of power and managed to bill 2,072 GWh, achieving an 80 percent billing efficiency.
The total billing for January was N130.9 billion, with N95 billion successfully collected, representing a 72 percent collection efficiency.
The allowed average tariff rate was N59.89k per kilowatt-hour (KWh), while the actual average collection was N36.97k/KWh.
February saw a decrease in the total energy received by Discos, dropping to 2,149 GWh. Of this, 1,759 GWh was billed, leading to N113 billion in billings and N97 billion in revenue collection.
In March, the energy received slightly increased to 2,468 GWh, with 1,975 GWh billed, resulting in N126.5 billion in billings and N100 billion in revenue.
The rise in revenue can be attributed to an increase in the tariff rates. NERC reported that the allowed average tariff for March was N62.73k/KWh, with the actual average collection at N40.69k/KWh. This tariff adjustment played a crucial role in bolstering Discos’ revenue.
Among the Discos, Ikeja Disco led the revenue generation with N20 billion in March, followed closely by Eko and Abuja Discos, each generating N16.7 billion.
Ibadan Disco contributed N10 billion, while Benin and Enugu Discos generated N7.5 billion and N6.9 billion, respectively.
The newly inaugurated Geometric Power, also known as Aba Power, recorded N1.1 billion in revenue, while Yola Disco earned N1.5 billion.
The total revenue generated by Discos in the first quarter of 2024 amounted to N292 billion. This period was marked by a nationwide blackout in January due to gas shortages, with power generation dropping from around 4,000 MW to below 2,500 MW at one point, severely impacting the Discos’ ability to supply electricity to consumers.
In response to the power supply crisis, the Discos issued apologies to their customers, citing their inability to distribute what was not available.
Despite the ongoing gas supply issues, NERC’s decision to remove electricity subsidies in Band A areas, raising the tariff to N206 per KWh, played a pivotal role in enhancing revenue.
