Electricity Distribution Companies (DisCos) lost an estimated N2.94 billion in revenues on Wednesday, 17th August 2022 following the 14-hour long strike action embarked on by Labour Unions.
Electricity workers under the aegis of the National Union of Electricity Employees (NUEE) and the Senior Staff Association Electricity and Allied Companies (SSAEAC) grounded the operations of the Transmission Company of Nigeria on Wednesday, leading to a nationwide blackout.
The strike action which lasted for 14 hours, means that discos had lost about N2.94 billion in revenue, with an average rate of N55/kWh, considering that the TCN produces an average of 3,818 megawatts of electricity, based on data tracked by Nairalytics in the past two weeks.
Although the strike action had been called-off after the Minister of Labour, Dr. Chris Ngige, Minister of Power, Mr, Abubakar Aliyu, Minister of State for Power, Mr. Goddy Jedy-Agba, and the representative of the Head of Service met on Wednesday evening.
The minister of Labour in a statement signed by its spokesperson said, “The Honourable Minister of Labour and Employment, Dr Chris Ngige, has apprehended (sick) the strike embarked upon by the National Union of Electricity Employees (NUEE) following an emergency meeting between the union, government, and other stakeholders.
The statement also added that Dr. Ngige has set up a tripartite committee to investigate the grievances of electricity workers towards addressing them.
The N2.94 billion loss is coming at a time when some discos have been dealing with a crunch in revenue amidst decline in power supply. Notably, the Benin Electricity Distribution Company (BEDC) said that it lost N750 million in the last one month as a result of what it described as an illegal takeover of its operations.
Similarly, a month ago, Ibadan Electricity Distribution Company lamented a decline in revenue as a result of huge outstanding bills, through non-payment of bills, underpayment, meter bye-passing, use of illicit meters, and energy theft by customers in its coverage area.
While the strike action only lasted for 14 hours, distribution companies could have earned an additional N2.94 billion if power supply had not been interrupted by the labour unions.
What you should know
- Nairametrics reported last week that 11 Nigerian DisCos increased their aggregate revenue by 44.5% to N761.2 billion in 2021 compared to N526.8 billion recorded in the previous month. Similarly, electricity bill in 2021 grew by 5.98% to 23,360.59 Gigawatts hour (Gwh), from 22,042.28Gwh recorded in 2020.