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Discos revenue slow by 31.2%, as poor revenue collection persist

The eleven distribution companies have continued to fall short in revenue collection compared to energy billed, as total revenue collected in Q1, 2023 stood at N247.09 billion, a 31.25 per cent decrease from ₦359.38 billion billed to customers.

This resulted in a 46.39 per cent ATC&C loss in the period, comprising – technical and commercial failure (22.03 per cent) and collection loss (31.25 per cent).

Businessday findings revealed a similar shortfall in revenue collections recorded in past quarters. For example, of N332.28 billion billed to customers in Q4 2022, only N243.65 billion was collected.

Also, in Q3 2022, the total revenue collected by eleven Discos was N210.67 billion out of N291.66 billion billed to customers. Total revenue collected in the second and first quarters of 2022 stood at N188.29 billion and ₦199.90 billion out of N265.68 billion and ₦295.69 billion billed to customers, respectively.

According to Nigerian Electricity Regulatory Commission (NERC), “the trend of all DisCos failing to achieve the efficient loss targets allowed in their tariffs translates into an inability to collect the revenues that are required to finance the sustainable long-term operations of the business, while also providing reasonable returns for investors.

Read also Tinubu’s power reforms target six DisCos’ ownership, management

“It is imperative for DisCos to employ technologies and operational procedures to increase both their billing and collection performances to forestall long-term financial challenges.”

As contained in the Q1, 2023 report released by NERC, the total energy received by all DisCos in 2023/Q1 was 7,495.49GWh while the point billed to end-use customers was 5,844.21GWh, translating into an average billing efficiency of 77.97 per cent.

Of the total N252.92 billion cumulative upstream invoices payable by DisCos, a total sum of ₦170.59 billion was remitted to the market operator in the period.

The report also showed that no international customers paid against the cumulative $16.11 million invoice issued to them.

These customers include; ParasSBEE ($3.46 million), Transcorp-SBEE ($3.85 million), MainstreamNIGELEC ($5.48 million) and Odukpani-CEET ($3.32 million).

“Out of ₦842.38 million invoice issued by MO to all the eight (8) bilateral customers in the NESI, only North-South/Star Pipe made a remittance of ₦15.38 million against its invoice of ₦24.69 million.

Read also 11 Discos generate N247.33 bn in Q1, 2023-report

“The non-remittance by bilateral consumers continues a trend highlighted in the past quarterly reports. The MO must invoke the provision of the market rules to curtail the payment indiscipline exhibited by the various market participants.

“A total of 171,107 meters were installed in 2023/Q1, representing an increase of 6,495 installations compared to the 164,612 meters installed in 2022/Q4. One hundred fifty-eight thousand six hundred thirty-four meters were installed under the MAP intervention while 9,931 meters were installed under the NMMP scheme,” it stated.