THE Nigerian Electricity Regulatory Commission (NERC) has revealed that electricity distribution companies (Discos) in the country made N291.62 billion in revenue in the first quarter (Q1) of 2024.
The NERC in its first quarter,2024 report, noted that the N291.2 billion generated was collected out of the N368.65 billion bills distributed to customers, resulting in a collection efficiency of 79.11 per cent.
This, according to the report, translates to an increase of over 5.32 per cent compared to the 73.79 percent collection efficiency in fourth-quarter (Q4) 2023.
This is just as the report disclosed that the licensed DisCos operating in the country remitted N110.62 billion out of the cumulative invoice of N114.12 billion in the first quarter (Q1) 2024.
This translates to a remittance performance of 96.93 per cent in Q1, 2024 compared to the 69.88 per cent recorded in fourth-quarter (Q4), 2023.
While also stating that 123,604 meters were installed in Q1, 2024, it added that the new installations increased the net end-user metering rate in the NESI by 0.40pp between fourth-quarter (Q4), 2023 (44.39 per cent) and first-quarter(Q1), 2024 (44.79 per cent).
The meters installation, according to the report, represented an increase of 8,423 installations (7.31 per cent) compared to the 115,181 meters installed in the fourth quarter (Q4), 2023.
The NERC further stressed that during the quarter, 114, 477 meters (92.62 per cent of the total installations) were installed under the MAP framework, while 14 meters were installed under the NMMP framework.
According to the NERC report, the DisCos cumulatively received 291,380 complaints from consumers in first-quarter (Q1), 2024, representing a decrease of -19,337 (-6.22 percent) compared to the 310,717 complaints received in fourth-quarter (Q4), 2023.
It said, that metering, billing, and service interruption were the prevalent issues of customer complaints, accounting for more than 75 per cent of the total complaints during the quarter.
Bilateral countries failed to remit
NERC in its report also revealed that none of its internal bilateral countries paid for the electricity they consumed from Nigeria during the first quarter of 2024.
The bilateral agreement, it would be noted is from neighboring West African countries who have some agreements with some power generation companies in Nigeria on power supply through the West African power pool.
According to the report, the countries owe $ 14.19 million as invoices issued to them by the Market Operator (MO) for the electricity supplied in the first quarter of 2024.
Also, none of the bilateral customers within the country made any payment against the cumulative invoice of N1,860.11 million issued to them by the MO for services rendered in the first quarter (Q1), of 2024.
This disclosure comes amidst broader regulatory efforts to reform the Nigerian Electricity Supply Industry (NESI) and transition to a more sustainable market structure.
NERC orders NESI to transition to bilateral trading
In a similar development, NERC has also issued a new order to transition the Nigerian Electricity Supply Industry (NESI) to a bilateral trading system.
This regulatory instrument, known as the “Order on the Transition to Bilateral Trading in the Nigerian Electricity Supply Industry,” will take effect from July 25, 2024, and remain in force until further notice.
The order followed the unbundling of the defunct Power Holding Company of Nigeria Plc. (PHCN) and the privatisation of successor Generation Companies (GenCos) and Distribution Companies (DisCos).
The Electric Power Sector Reform Act (EPSRA) had initially provided for the establishment of the Nigerian Bulk Electricity Trading Company Plc. (NBET) as an intermediary to procure energy and capacity from GenCos and sell to DisCos until the latter achieved the required creditworthiness.
According to the new order, NBET is expected to immediately stop entering into new contracts for the purchase and resale of electricity and ancillary services in NESI, noting that any new contracts executed in violation of this order will not be approved and will be subject to regulatory sanctions.
It further stated that NBET would continue to administer fully effective contracts with five GenCos based on the minimum “take-or-pay” capacities specified in their Power Purchase Agreements (PPAs) or their average available capacity in 2023.
With the new order, DisCos is now allowed to negotiate and contract directly with GenCos for their electricity needs.
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: [email protected]. He tweets @UsmanMustapha_M