Despite complaints of low power generation, electricity distribution companies (DisCos) in Nigeria increased their monthly revenue from ₦95 billion in January to ₦100 billion in March 2024.
According to data from the Nigerian Electricity Regulatory Commission (NERC), revenue in February was ₦97 billion.
Our correspondent observed that this revenue increase occurred during a significant drop in power supply due to gas shortages.
NERC data showed that DisCos received 2,577 gigawatt-hours (GWh) of power in January and billed 2,072 GWh, achieving an 80% billing efficiency. The total billing for January was ₦130.9 billion, with ₦95 billion collected, representing a 72% collection efficiency. The allowed average tariff rate was ₦59.89 per kilowatt-hour (kWh), while the actual average collection was ₦36.97/kWh.
In February, the total energy received by DisCos dropped to 2,149 GWh, of which 1,759 GWh was billed, generating ₦97 billion from ₦113 billion in billings.
In March, 1,975 GWh was billed from the 2,468 GWh received, with ₦100 billion generated from ₦126.5 billion in billings. The rise in revenue is attributed to an increase in tariffs, with the NERC stating that the allowed average tariff for March was ₦62.73/kWh, while the actual average collection was ₦40.69/kWh.
In March, Ikeja Disco had the highest revenue of ₦20 billion, followed by Eko and Abuja Discos with ₦16.7 billion each. Ibadan Disco generated ₦10 billion, while Benin and Enugu Discos earned ₦7.5 billion and ₦6.9 billion, respectively. The newly inaugurated Geometric Power (Aba Power) generated ₦1.1 billion, and Yola Disco earned ₦1.5 billion.
For the first quarter of 2024, the DisCos collectively generated ₦292 billion.
In January, Nigeria experienced nationwide blackouts due to gas shortages, as gas companies refused to supply gas to electricity-generating companies because of unpaid debts. Power generation, typically around 4,000 MW, dropped below 2,500 MW, impacting the DisCos’ ability to supply electricity.
The DisCos issued apologies to their customers, stating, “We cannot give what we don’t have.”
Amid ongoing gas shortages, the NERC removed electricity subsidies in areas categorized as Band A, raising the tariff to ₦206 per kilowatt-hour. In response to protests by labor unions against the tariff hike, the Minister of Power, Adebayo Adelabu, asserted that the revised tariff would bring liquidity to the power sector, attracting local and foreign investors.
