• Sunday, October 06, 2024
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Power sector strained as Togo, Benin, others owe Nigeria $14.19m for electricity exported in Q1

None of the four international bilateral electric power customers serviced by the Market operators made any payment against the $14.19 million invoice issued to them for services rendered in 2024/Q1, the Nigerian Electricity Regulatory Commission report has shown.

 

According to NERC’s first quarter 2024 report, the international customers which includes PARAS-SBEE, Transcorp- Société Béninoise d’Energie Electrique (SBEE), Mainstream- Nigerien Electricity Society (NIGELEC) power utility firm in Niger Republic and Odukpani- Compagnie Energie Electriques du Togo (CEET) owed $ 3.15 million, $4.46 million, $1.21 million and $ 5.36 million respectively.

 

Read also:FG, USAID sign N115 bn partnership deal to drive sustainable electricity in Nigeria

 

The report also indicated that Ajaokuta Steel Co. Ltd and the host community (special customers) did not make any payment towards the ₦1.27 billion (NBET) and ₦0.09 billion (MO) invoices received in 2024/Q1.

“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities. A continuation of the non-payment may trigger total disconnection from the grid,” NERC stated in the report.

 

Similarly, none of the bilateral customers within the country made any payment against the cumulative invoice of ₦1.860 billion issued to them by the MO for services rendered in 2024/Q1.

 

The total revenue collected by all DisCos in the period was ₦291.62 billion out of ₦368.65 billion billed to customers. Also, the total energy received by all DisCos was 7,171.93GWh while the energy billed to end-use customers was 5,769.52GWh, translating into an overall billing efficiency of 80.45 percent.

Read also:These three charts show DisCos’ commercial performance in one month

 

Ikeja DisCo collected the highest revenue (N57.88 billion) in the period, followed by Eko DisCo at N48.74 billion. While Yola DisCo collected the least revenue at N5.46 billion.

 

Also, of the total revenue collected in the period, Abuja DisCo collected N48.60 billion, Ibadan DisCo collected N30.35 billion, Benin DisCo collected N22.46 billion, Enugu DisCo collected N21.24 billion, Port Harcourt DisCo collected N20.39 billion.

Others include: Kano DisCo at N13.62 billion, Jos DisCo collected N13.29 billion, Kaduna DisCo collected N9.60 billion.

 

The aggregate ATC&C loss recorded across all 11 DisCos in the period was 36.36 percent, which comprised 19.55 percent in technical and commercial losses, and 20.83 percent in collection loss. “The aggregate ATC&C loss of 36.36 percent recorded in 2024/Q1 is 8.86pp higher than the allowed aggregate efficient loss target (27.50 percent) applied in the computation of the tariffs in the MYTO.

 

The Aggregate Technical, Commercial and Collection (ATC&C) loss is a summation of billing losses incurred by a DisCo due to its inability to bill 100% of energy delivered to customers (technical and commercial losses) and the collection losses arising from the DisCo’s inability to collect 100% of the bills issued to customers.

 

“This means that cumulatively, DisCos recorded losses that are 8.86pp higher than what was allowed to be recovered from the customers – these inefficient losses that are not recoverable from customers will adversely affect DisCos’ profitability.

 

“All the DisCos recorded decreases in ATC&C loss in 2024/Q1 compared to 2023/Q4 with the highest decreases recorded by Kaduna (-12.97pp) and Benin (-9.35) during the period. Ikeja DisCo outperformed its allowed ATC&C in 2024/Q1 by achieving an actual ATC&C of 15.81% which is lower than the set target of 18.73%.

 

“This means that during the quarter, Ikeja DisCo was able to earn 100% of its revenue requirement for the period which should allow it to cover all market obligations as well as operational costs. It is worth noting that Ikeja DisCo has the lowest ATC&C target amongst all the DisCos, therefore outperforming this low target is a commendable
achievement.

 

“The other DisCos did not achieve their target ATC&C in 2024/Q1 with the widest variance (target – actual) being recorded by Kaduna (-34.96pp), Kano (-27.73pp) and os (-21.04pp),” it stated.

 

Read also:FG to penalise DisCos supplying less than 20 hours of electricity to Band A customers

 

The Commission stated that failure of the DisCos to meet their allowed loss targets means they are unable to meet revenue requirements, thereby compromising their long-term financial position. It added that it is working with all the DisCos, to take remedial actions through customer enumeration and increased revenue assurance to improve their ATC&C loss.

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