NERC: DisCos generated N431bn revenue in Q2 2024 — up by 47%

The Nigerian Electricity Regulatory Commission (NERC) says distribution companies (DisCos) generated N431.16 billion between April and June of 2024.

In its latest report for the second quarter (Q2) of 2024, NERC said the revenues from customers in Q2 2024 increased by 47.84 percent from N291.62 billion recorded in Q1.

“The total revenue collected by all DisCos in 2024/Q2 was ₦431.16 billion out of ₦543.64 billion billed to customers,” NERC said.

“This translates to a collection efficiency of 79.31% which represents an increase of +0.20pp when compared to 2024/Q1 (79.11%).”

On revenue collection performance of all DisCos, NERC said Ikeja and Eko DisCos recorded the highest collection efficiencies of 94.67 percent (N87.36 billion) and 88.03 percent (N75.33 billion), respectively.

“Conversely, Yola DisCo recorded the lowest collection efficiency of 55.67% (N4.78 billion),” NERC said.

“A comparison of DisCos performance in 2024/Q1 and 2024/Q2 showed that six (6) DisCos recorded improvements in collection efficiency in 2024/Q2 when compared to 2024/Q1 with Yola DisCo recording the highest increase of +12.64pp.

“Conversely, five (5) DisCos recorded declines in collectionefficiency with aduna having the most significant decrease (-10.04pp) during the period.”

DISCOS REMITTED N318.6BN

NERC said the cumulative upstream invoice payable by DisCos was N399.53 billion, consisting of N343.76 billion for DisCos remittance obligations (DRO)-adjusted generation costs from Nigerian Bulk Electricity Trading (NBET) and N55.77 billion for transmission and administrative services by the market operator (MO).

“Out of this amount, the DisCos collectively remitted a total sum of ₦318.65 billion (₦271.87 billion for NBET and ₦46.78 billion for MO) with an outstanding balance of ₦80.88 billion,” the commission said.

“This translates to a remittance performance of 79.76% in 2024/Q2 compared to the 96.93% recorded in 2024/Q1.”

On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the classification, who receive 20 hours of electricity supply daily, will pay N225 per kilowatt (kW), starting from April 3 — up from N66.

Following the development, NERC said the approved tariff would reduce electricity subsidy for the 2024 fiscal year by about N1.14 trillion.