Discos saw revenue decline by $54.2 billion in September – Business – The Guardian Nigeria News – Nigeria and World News

Electricity distribution companies (DisCos) recorded a revenue shortfall of N54.22 billion as of September 2024, out of a total bill of N225.8 billion.

This was revealed in the commercial discom results released by the Nigerian Electricity Regulatory Commission (NERC), which attributed the shortfall to inefficiencies in energy storage.

According to the report, out of the total N225.8 billion, DisCos collected N171.58 billion, reflecting a collection efficiency of 75.99%, a decline of 4.92% from August 2024.

However, despite the overall decline, Ikeja Electric (IE) emerged as the best performing DisCo with a capacity ratio of 96.75%, down 7.26% from the August report.

IE collected N35.2 billion out of the invoiced N36.38 billion with a revenue recovery efficiency of 88.55%. Its actual average consumption was N101.57/kWh compared to the permitted average tariff of N114.7/kWh.

Closely followed by Eko DisCo which achieved a collection efficiency of 81.4%, with a slight improvement of 1.58% compared to August, collecting N31.16 billion out of the invoiced N35.28 billion, with recovery efficiency revenue of 88.36% and amounting to N104.56/kWh compared to the permissible average tariff of N118.33/kWh.

A breakdown of collection efficiency by DisCos indicates that the collection efficiency of Abuja DisCo improved by 0.71 percent from the previous month, reaching 81.35 percent in September, after collecting N28.28 billion out of a total settlement of N43.77 billion, with revenues, recovery efficiency of 83.15% at 97.54 N/kWh compared to the allowed tariff of 117.31 N/kWh.

Ibadan DisCo collected N21.99 billion out of N26.1 billion settled at a recovery efficiency of 72.18 percent, recording an average collection of N84.04/kWh against the permitted tariff of N116.43/kWh.

Benin DisCo recorded a collection efficiency of 82.46%, collecting N15.22 billion out of its total accounts of N18.45 billion, with a recovery efficiency of 67.29%.

Aba DisCo recorded a collection efficiency of 71.57%, collecting N1.43 billion in revenue out of a total of N1.99 billion for the month, with a revenue recovery efficiency of 85.42%, achieving N83.29/kWh, despite N97 0.50/kWh of the allowable average tariff in a given month.

However, Yola DisCo, which recorded a collection efficiency of 36.71%, collected N1.48 billion out of the N4.04 billion invoice and achieved a recovery efficiency of 47.35% with N56.63/kWh collected in compared to the permitted tariff of N119/kWh.

Jos DisCo recorded a collection efficiency of 43.49 percent, having collected N5.06 billion out of N11.63 billion accrued with a recovery efficiency of 42.41 percent, with an average collection of N49.07/kWh compared to the permitted N115 tariff . 70/kWh.

Kaduna DisCo fared slightly better, achieving a collection efficiency of 53.73 percent, collected N4.42 billion out of the N8.22 billion invoiced and achieved a low recovery efficiency of 35.28 percent.

with an average consumption of N39.86/kWh compared to the permitted tariff of N113/kWh.
Kano DisCo underperformed during the period under review as it collected N3.07 billion out of a total settlement of N14.95 billion, with a recovery efficiency of 20.83 percent, recording an average consumption of N24.14/kWh in compared to the permitted N115.89/kWh tariff.