DisCos record N54.2 billion revenue shortfall in September

The Electricity Distribution Companies (DisCos) recorded a revenue shortfall of N54.22 billion in September 2024, from total billings of N225.8 billion.

This was revealed in the commercial performance for the DisCos released by the Nigerian Electricity Regulatory Commission (NERC), which attributed the shortfall to inefficiencies in collection.

According to the report, out of total billings of N225.8 billion, the DisCos collected N171.58 billion, which reflects a collection efficiency of 75.99 per cent, indicating a 4.92 per cent decline compared to August 2024.

However, despite the overall decline, Ikeja Electric (IE) emerged as the best-performing DisCo with an efficiency ratio of 96.75 per cent, which had a drop of 7.26 per cent compared to the August report.

IE collected N35.2 billion out of N36.38 billion billed, with a revenue recovery efficiency of 88.55 per cent. It had an actual average collection of N101.57/kWh against an allowed average tariff of N114.7/kWh.

Eko DisCo followed closely with 81.4 per cent collection efficiency, with a slight improvement of 1.58 per cent compared to August, having collected N31.16 billion out of N35.28 billion billed, with a revenue recovery efficiency of 88.36 per cent at N104.56/kWh compared to the allowed average tariff of N118.33/kWh.

In a breakdown of the collection efficiency by the DisCos, Abuja DisCo collection efficiency improved by 0.71 per cent from the previous month attaining 81.35 per cent in September, having collected N28.28 billion from a total billing of N43.77 billion, with a revenue recovery efficiency of 83.15 per cent at N97.54/kWh, compared to its allowed tariff of N117.31/kWh.

Ibadan DisCo collected N21.99 billion from N26.1 billion billed with a recovery efficiency of 72.18 per cent, recording an average collection of N84.04/kWh compared to the allowed tariff of N116.43/kWh.

Benin DisCo recorded 82.46 per cent collection efficiency, collecting N15.22 billion from its total billings of N18.45 billion with a recovery efficiency of 67.29 per cent.

Aba DisCo recorded a collection efficiency of 71.57 per cent having collected N1.43 billion in revenue out of a total of N1.99billion for the month in view with a revenue recovery efficiency of 85.42 per cent having achieved N83.29/ kWh, despite N97.50/kWh of Allowable average tariff for the month in view.

However, Yola DisCo, which recorded a 36.71 per cent collection efficiency, collected N1.48 billion out of N4.04 billion billed, and had a recovery efficiency of 47.35 per cent, with N56.63/kWh collected against N119/kWh allowed tariff.

Jos DisCo recorded a collection efficiency of 43.49 per cent, having collected N5.06 billion out of N11.63 billion billed with a recovery efficiency of 42.41 per cent, with an average collection of N49.07/kWh against an allowed tariff of N115.70/kWh.

Kaduna DisCo fared slightly better, with a collection efficiency of 53.73 per cent having collected N4.42 billion out of N8.22 billion billed and attained a low recovery efficiency of 35.28 per cent.

with an average collection of N39.86/kWh compared to its allowed tariff of N113/kWh.
Kano DisCo underperformed in the period under review as it collected N3.07 billion from total billings of N14.95 billion, with a recovery efficiency of 20.83 per cent, recording an average collection of N24.14/kWh against N115.89/kWh allowed tariff.