The Nigerian Electricity Regulatory Commission (NERC) has disclosed that electricity distribution companies (DisCos) recorded a cumulative energy offtake performance of 94.61% in the fourth quarter (Q4) of 2024.
This was revealed in the recently released NERC 2024/Q4 Report, which also noted a 4.14 percentage point increase in energy offtake compared to Q3 2024.
According to the report, five DisCos surpassed the 95% threshold in taking energy allocated to them under the Power Capable Capacity (PCC) system. These included:
- Benin DisCo with the highest offtake at 99.57% from 98.01% in Q3 2024
- Enugu DisCo at 96.82% from 98.65% in Q3 2024
- Port Harcourt DisCo at 96.62% from 95.11% in Q3 2024
- Ibadan DisCo at 96.60% from 94.70% in Q3 2024, and
- Ikeja DisCo at 96.15% from 89.56% in Q3 2024.
On the flip side, several DisCos underperformed by failing to meet the 95% offtake benchmark. Notably, Yola DisCo recorded the lowest performance with an offtake rate of 76.89%.
Other DisCos like Kaduna (87.68% from 81.97% in Q3 2024), Abuja (91.89% from 86.52% in Q3 2024), and others also fell below the compliance threshold.
According to the report, Benin, Ikeja, Port Harcourt, and Ibadan DisCos recorded quarter-on-quarter improvements, while Enugu DisCo experienced a decline in performance.
According to the report, “At an aggregate level, the energy offtake performance of the DisCos increased by +4.14pp between 2024/Q4 and 2024/Q3,”
The report noted a recurring trend: “a reduction in available PCC across 2 quarters often leads to an increase in energy offtake performance while an increase in available PCC across 2 quarters often leads to a decrease in energy offtake performance.”
This dynamic reflects how system-wide generation fluctuations impact the ability and willingness of DisCos to absorb allocated energy.
Enforcement Kicks Off for Underperformers
NERC highlighted that enforcement mechanisms have been activated in line with the Performance Monitoring Framework Orders (NERC/2024/086 – 096) issued on July 5, 2024. These Orders mandate that all DisCos must take at least 95% of their available PCC each quarter or face regulatory sanctions.
“Pursuant to these provisions, the Commission has already commenced the appropriate enforcement actions against DisCos that did not meet the minimum off take requirement for 2024/Q4.”, the NERC Q4 2024 report says.
The enforcement move signals NERC’s growing resolve to ensure efficiency and accountability within the distribution segment of the Nigerian electricity supply industry.
DisCo offtake performance is a key metric in Nigeria’s electricity market. It directly affects energy flow, liquidity within the Nigerian Electricity Supply Industry (NESI), and ultimately, end-user satisfaction.
A DisCo’s inability to fully utilize available capacity not only leads to wasted energy generation but also causes financial losses across the power value chain—from generation to transmission.
