Electricity Providers Boost Monthly Income By N5bn Amid Power Outages

Electricity Providers Boost Monthly Income By N5bn Amid Power Outages

Despite complaints of low power generation, Nigeria’s electricity distribution companies (Discos) saw their monthly revenue rise from N95bn in January to N100bn by March 2024………..CONTINUE READING

According to data from the Nigerian Electricity Regulatory Commission (NERC), February’s revenue reached N97bn. This increase occurred even as the country faced significant power supply disruptions due to gas shortages.

NERC data revealed that in January, Discos received 2,577 gigawatt-hours (GWh) of power and billed 2,072GWh, achieving an 80% billing efficiency. The total billing for the month was N130.9bn, with N95bn collected, representing a 72% collection efficiency. The allowed average tariff rate was N59.89 per kilowatt-hour (kWh), while the actual average collection was N36.97/kWh.

In February, the total energy received by Discos fell to 2,149GWh, with 1,759GWh billed. The revenue collected was N97bn from N113bn billed. By March, Discos received 2,468GWh and billed 1,975GWh, generating N100bn from N126.5bn billed.

The rise in revenue is partly attributed to a tariff increase. The NERC reported that the allowed average tariff for March was N62.73/kWh, while the actual average collection was N40.69/kWh.

In March, Ikeja Disco led with N20bn in revenue, followed by Eko and Abuja Discos, each generating N16.7bn. Ibadan Disco earned N10bn, while Benin and Enugu Discos collected N7.5bn and N6.9bn, respectively. The newly inaugurated Geometric Power, also known as Aba Power, generated N1.1bn, and Yola Disco earned N1.5bn.

Overall, Discos generated N292bn in the first quarter of 2024.

In January, nationwide blackouts occurred due to gas shortages, as gas companies halted supplies to power generators over unpaid debts. This crisis reduced power generation from around 4,000MW to below 2,500MW, impacting Discos’ ability to supply electricity.

During this period, Discos apologized to their customers, stating, “We cannot give what we don’t have.”

While gas supply issues persisted, NERC removed electricity subsidies for areas in Band A, increasing the tariff to N206/kWh. Despite protests from labor unions demanding a reversal, Minister of Power Adebayo Adelabu maintained that the tariff hike would provide the necessary liquidity to transform the Nigerian power sector

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Source: Bushradiogist