The Nigerian Electricity Regulatory Commission (NERC) has said the total revenue collected by all electricity distribution companies in Nigeria (DisCos) in Q4 2024 was ₦509.84 billion out of the ₦658.40 billion billed to customers.
These were contained in NERC’s 2024 fourth quarterly report made available to Journalists on Monday, saying this translated to a collection efficiency of 77.44%.
Also, it added that the ₦509.84 billion collected by all DisCos in Q4 2024 out of the ₦658.40 billion billed to customers represented an increase of +2.89 percentage points compared to Q3 2024 (74.55%).
It further said: “The Aggregate Technical, Commercial, and Collection (ATC&C) loss is a summation of billing losses incurred by a DisCo due to its inability to bill 100% of energy delivered to customers (technical and commercial losses) and collection losses arising from the DisCo’s inability to collect 100% of the bills issued to customers.
“The weighted average ATC&C loss across all the DisCos in Q4 2024 was 35.22%, comprising technical and commercial loss (16.34%) and collection loss (22.56%).
“The ATC&C loss of 35.22% was +10.44 percentage points higher than the MYTO target (24.78%) and translates to a cumulative revenue loss of ₦139.08 billion across all DisCos.
“The ATC&C loss decreased by -3.88 percentage points (improved performance) compared to Q3 2024 (39.10%).
“Only Yola and Eko DisCos achieved their target ATC&C, as provided in the MYTO, during the quarter.
“The other DisCos failed to achieve their target ATC&C, with Kaduna DisCo recording the worst underperformance relative to the target ATC&C (Actual – 60.65% vs. target – 25.00%).
“In Q4 2024, the cumulative upstream invoice payable by DisCos was ₦408.86 billion, consisting of ₦360.97 billion for DRO-adjusted generation costs from the Nigerian Bulk Electricity Trading Plc (NBET) and ₦47.89 billion for transmission and administrative services by the Market Operator (MO).
“Out of this amount, the DisCos collectively remitted a total sum of ₦378.93 billion (₦336.63 billion for NBET and ₦42.30 billion for MO), with an outstanding balance of ₦29.92 billion. This translates to a remittance performance of 92.68% in Q4 2024 compared to the 83.77% recorded in Q3 2024.”
On remittance by Special and Bilateral Customers, NERC said: “In Q4 2024, the six international bilateral customers purchasing power from grid-connected GenCos made a cumulative payment of $5.21 million against the $14.05 million invoice issued to them by the MO for services rendered in Q4 2024.
“Similarly, the domestic bilateral customers made a cumulative payment of ₦1,252.58 million against the ₦1,977.02 million invoice issued to them by the MO for services rendered in Q4 2024.”
NERC revealed that the six international bilateral customers being supplied by GenCos in the Nigerian Electricity Supply Industry (NESI) made a payment of $5.21 million against the cumulative invoice of $14.05 million issued by the MO for services rendered in Q4 2024, translating to a remittance performance of 37.08%.
It added that the domestic bilateral customers made a cumulative payment of ₦1,252.58 million against the invoice of ₦1,977.02 million issued to them by the MO for services rendered in Q4 2024, translating to a 63.36% remittance performance.
“It is noteworthy that some bilateral customers (both domestic and international) made payments during Q4 2024 for outstanding MO invoices from previous quarters. Paras-CEET, Pars-SBEE, and Transcorp-SBEE made payments of $0.98 million, $0.70 million, and $1.30 million, respectively, towards outstanding invoices from previous quarters.
“Similarly, the MO received ₦135.81 million from domestic bilateral customers [NDPHC-Weewood; ₦21.17 million, NorthSouth/Star Pipe; ₦11.00 million, Taopex; ₦83.00 million, and Trans-Amadi (OAU/FMPI); ₦20.74 million] towards outstanding invoices from previous quarters.
“The special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦1.27 billion (NBET) and ₦0.11 billion (MO) invoices received in Q4 2024.
“This continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant Federal Government of Nigeria (FGN) authorities.”
