Since the country’s electricity distribution companies (DisCos) were able to charge cost-reflective tariffs due to the removal of the Band A consumer subsidy, they have noticed a gradual improvement in their billing efficiency.
According to a recent report by the Nigeria Electricity Regulatory Commission (NERC), the DisCos brought in N150.86 billion in revenue in June 2024, indicating an 85.44 percent collection efficiency.
Distribution firms (DisCos) over the nation sent invoices to clients totaling N176.57 billion during the same period, according to a NERC performance report.
With N30.06 billion in revenue generated, Ikeja DisCo led the way in billing efficiency at 102.44%. Eko DisCo came in second with N26.37 billion in revenue and a 97.07 percent billing efficiency rate. Eyes Of Lagos reports,
Abuja DisCo made the third-highest income, totaling N24.29 billion for the month, while Benin DisCo had the third-highest billing efficiency, at 89.49 percent.
Yola DisCo had the lowest revenue—N3.08 billion—as well as the lowest collection efficiency—60.81 percent. Following with collection efficiency rates of 62.03 percent and 66.46 percent, respectively, and revenues of N4.96 billion and N5.01 billion, were Kaduna DisCos and Jos DisCos.
In June, DisCos collected N150 billion, a significant amount more than in prior months due to the rise in Band A subscribers’ power tariffs.
A substantial pricing rise of more than 200 percent was implemented by NERC in April for Band A customers, who make up around 17% of Nigeria’s energy users.
Only consumers who received at least 20 hours of electricity each day were affected by the tariff increase, according to NERC.
DisCos collected N97.01 billion in February of last year, out of a total of N113.05 billion that was billed. With a collection efficiency of 114.64 percent, Ikeja DisCo emerged as the leader, collecting N19.48 billion out of the N17.08 billion that was billed. Following suit, Eko and Abuja DisCos recorded collection efficiency of 97.24% and 87.26%, respectively.
DisCos made N291.62 billion in revenue in the first quarter of 2024, a little less than the N294.95 billion they made in the last quarter of 2023.
