NERC records decline in industry billing efficiency as Eko leads collection performance while Kaduna trails……
Nigeria’s electricity distribution companies recorded an N83.15 billion gap between the value of electricity supplied to them and the amount billed to customers in July, according to the latest data from the Nigerian Electricity Regulatory Commission.
The DisCos received electricity valued at N333.94 billion during the month but billed customers N250.79 billion, leaving a significant portion of the electricity supplied outside the value captured through customer billing.
NERC disclosed this in its July commercial performance factsheet for electricity distribution companies, which showed that industry-wide billing efficiency slipped during the month.
Billing efficiency fell to 75.1 per cent in July from 76.24 per cent recorded in June.
The regulator also reported an overall recovery efficiency of 74.91 per cent, with DisCos collecting an average of N97.50 for every kilowatt-hour of electricity sold.
This was below the allowed average tariff of N130.15 per kWh, highlighting the gap between the revenue DisCos were able to recover and the benchmark tariff applicable to the sector.
Kano leads billing efficiency
The performance of individual DisCos varied considerably during the month.
Kano Electricity Distribution Company posted the highest billing efficiency at 85.37 per cent, placing it ahead of Port Harcourt DisCo, which recorded 82.34 per cent.
Eko DisCo followed with a billing efficiency of 78.63 per cent.
On revenue collection, however, Eko DisCo recorded the strongest performance, posting a collection efficiency of 101.78 per cent.
Benin DisCo followed with 89 per cent, while Yola DisCo recorded 88.92 per cent.
At the other end of the scale, Kaduna DisCo recorded the lowest collection efficiency at 49.95 per cent.
Jos DisCo and Kano DisCo also recorded relatively low collection efficiencies of 52.70 per cent and 52.79 per cent, respectively.
NERC’s figures further showed that Eko DisCo recorded a recovery efficiency of 94.67 per cent in July, making it the leading performer under that measure.
Port Harcourt DisCo followed at 84.95 per cent, while Benin DisCo recorded 79.15 per cent.
Kaduna DisCo had the weakest recovery efficiency at 39.71 per cent, followed by Jos DisCo at 46.27 per cent and Kano DisCo at 55.41 per cent.
The July figures point to continued differences in the commercial performance of Nigeria’s electricity distribution companies, particularly in their ability to translate electricity supplied into billings and subsequently recover revenue from customers.
