- DISCOs’ revenue dropped by 5.0% to N163.07 billion in October 2024, while billing efficiency rose to 84%.
- NERC introduced stricter compliance measures for DISCOs, including penalties for failure to meet energy offtake and reporting targets.
The total amount billed to electricity customers by Nigeria’s Distribution Companies (DISCOs) fell by 5.4% in October 2024, dropping to N213.62 billion from N225.80 billion in September 2024. Likewise, the total revenue collected by DISCOs declined by 5.0%, from N171.58 billion in September to N163.07 billion in October 2024.
This decline occurred despite a billing efficiency increase to 84% in October, up from 82.36% in September. The revenue collection efficiency for DISCOs stood at 76.33%, while the average allowed tariff for October was N115.74 per kWh, with actual collection at N86.62 per kWh. This resulted in an overall recovery efficiency of 74.84%.
Regarding energy metrics, the total energy received in October was 2,361.43 GWh, while the energy billed to customers was 1,988.52 GWh, reflecting a billing efficiency of 84.21%.
Industry stakeholders have attributed the sector’s financial challenges to billing shortfalls, underinvestment, and inefficiencies in power distribution. However, many electricity consumers have expressed dissatisfaction, particularly those on estimated billing systems, arguing that they are often over-billed for unreliable service.
The Nigerian Electricity Regulatory Commission (NERC) introduced an updated performance monitoring framework for DISCOs to address these concerns. This includes an addendum to the Performance Monitoring Framework Order issued in July 2024. Effective December 23, 2024, the addendum introduces stricter compliance measures for DISCOs.
Key changes include a revised penalty for failing to offtake at least 95% of nominated energy, which will result in a 5% reduction in administrative operational expenditures for the next quarter. Additionally, the reporting requirements for DISCOs have been updated, with penalties for failing to meet compliance targets for two consecutive months. NERC also set a new target for resolving consumer complaints: DISCOs are now expected to resolve 75% of complaints within a quarter.
These measures aim to improve DISCOs’ operational performance, enhance customer satisfaction, and ensure better energy delivery. NERC plans to apply the updated enforcement framework starting from Q1 2025.