A report released by the Nigerian Electricity Regulatory Commission (NERC) revealed that Abuja and Ikeja DisCos scored the highest in collection efficiency, out of the 11 electricity distribution companies in Nigeria, for the first quarter of 2020.
In appraising the individual performances of the DisCos, Abuja DisCo had the highest collection efficiency of 80.89%, followed by Ikeja DisCo with 72.39%. Port Harcourt DisCo has the lowest collection efficiency of 43.36%.
READ: FG to inject over N198 billion on capital projects in power sector in 2021
READ: NERC to sanction 7 DisCos over uncapped estimated billing
However, on a quarter-on-quarter basis, only Abuja and Kaduna DisCos recorded improvements in collection efficiency. In particular, Kaduna DisCo recorded the highest increase of 3.65 percentage points, moving from 40.44% in 2019/Q4 to 44.09% in the first quarter of 2020.
The total revenue collected by eleven electricity distribution companies (DisCos) from customers in the first quarter of 2020, Q1 2020, stood at ₦114.29 billion out of a total bill of ₦186.82 billion.
READ: Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply
READ: NERC says Discos will compensate electricity consumers for power delivery failure
The DisCos’ collection efficiency, which is arrived at through total revenue collected as a ratio of the total billing by DisCos, declined in 2020/Q1.
The overall collection efficiency for all DisCos decreased to 61.18% in the first quarter of 2020, representing 8.26 percentage points decrease from the 69.44% collection efficiency recorded in 2019/Q4.
READ: FG discloses how the problem of the power sector was created
READ: DMO offers N150 billion worth of FGN Bonds for subscription
The collection efficiency implies that for every ₦10.00 worth of energy billed to customers by DisCos in the first quarter of 2020, approximately ₦3.88 remained unrecovered from customers as at when due.
Low collection efficiency combined with billing inefficiencies have had adverse impact on the financial liquidity of the industry, which in turn, has led to low investment in the Nigerian Electricity Supply Industry (NESI).
READ: FG discloses how the problem of the power sector was created
READ: What to do if your DisCo has not complied with reversed electricity tariff this week
What you should know
- Low collection efficiency has been largely attributed to the customers’ displeasure with estimated billings which have often resulted in an unwillingness to pay the bills.
- The Commission, during the quarter, issued an order on capping of monthly estimated bill, limiting the total volume of energy an unmetered customer can be billed to the average monthly energy use of a typical pre-paid meter customer in the same business unit.
- Abuja Electricity Distribution Company (AEDC) is one of the 11 power distribution companies that was privatized and handed over to new investors on 1 November 2013. KANN Utility Limited (KANN) is the 60% equity holder in AEDC. The Federal Government of Nigeria holds 40% equity in AEDC. It has franchise for the distribution and sale of electricity in the Federal Capital Territory, Niger State, Kogi State and Nassarawa State.
- Ikeja Electric Plc is based in Ikeja, the capital city of Lagos. The company emerged on November 1, 2013 following the handover of the defunct Power Holding Company of Nigeria (PHCN) to NEDC/KEPCO Consortium under the privatization scheme of the Federal Government of Nigeria.
READ: Recycling firm invests $8m in Nigerian factory following China’s ban
READ: FG owes DisCos over N500 billion in electricity Subsidy – PwC
READ: FIRS charges VAT on betting and lottery games, as stakeholders protest
Ikeja is making money bc it relishes abnormal charges
Am a customer on estimated billing despite applying for pre paid meter without such for months
Am bn charged 450 units for a household of two at a cost of 20 thousand naira
17 Garari Balogun Street ogudu Lagos
The so-called collection efficiency is a fraudulent measure ( unjust weight)so far customers are not metered yet charged overinflated unmetered estimated billing which is unofficial and therefore criminal!
And this government is an accomplice in the crime for not obliging Disco to justly Meter consumers and for taking 40% of the extorted revenue.
Disco must cancel all the fictitious so called ” Debt” they have been stealing from consumers through forced payment of 30% of the fictitious Debit balances from time to time. Fictitious because the debit balance are accruals from agelong artificially overinflated unmetered estimated billing since regimen of defunct NEPA, PHCN and from Take over by Disco’s sine November 2013.
Cancel the fictitious Debt and vomit the ones already forcefully collected from customers by credit payback into shortchanged customers account after conducting a robust SOA Reconciliation from aged past since the days of our great grand parents till date!
#ENDDISCO is in the pipeline!