11 DisCos collect N294.95bn, achieve 73.79% collection efficiency in Q4, 2023 – NERC report

.. Ikeja electric, EKEDC, AEDC retain tops DisCos in Q4,2023 collection efficiency

… Jos, Yola DisCos hit rock bottom, collection efficiency falls below 50%

Oredola Adeola

The Nigerian Electricity Regulatory Commission (NERC) has released its fourth quarter (Q4, 2023) statutory report, revealing that the eleven Distribution Companies (DisCos) in Nigeria collected a total of N294.95 billion from customers out of a total of N399.69 billion bills issued, translating to a collection efficiency of 73.79%.

The NERC made this known in its fourth quarter Q4,23, statutory report obtained by Advisors Reports on Tuesday, highlighting the performance of each DisCo in terms of collection efficiency.

In monetary terms, the billing in Q4,2023 increased by +14.34%, revenue collections increased by +10.22%, however, collection efficiency dropped by – -2.76 % compared with Q3,2023.

In the quarter under review, Ikeja Electric (IE) collected N60 billion, achieving a collection efficiency of 95 percent, emerging as the highest among all the 11 DisCos.

The Eko Electricity Distribution Company (EKEDC) achieved a collection efficiency of 84 percent, collecting N50 billion from customers, while Abuja Electricity Distribution Company (AEDC) recovered N46 billion, representing an efficiency of 80 percent.

Other notable performances include Enugu Electricity Distribution Company (EEDC) with a collection efficiency of 76 percent, collecting N23 billion from customers.

Port Harcourt Electricity Distribution Company achieved 70 percent collection efficiency, collecting N20 billion from customers, while Ibadan Electricity Distribution Company (IBEDC) achieved 68 percent collection efficiency, collecting N68 billion from customers.

Benin Electricity Distribution Company (BEDC) achieved a collection efficiency of 65 percent, collecting N22 billion from customers.

Meanwhile, Kano Electricity Distribution Company (KEDC) and Kaduna Electric (KAEDC) both achieved 61 percent collection efficiency, having collected N14 billion and N9 billion respectively from customers during the quarter being reviewed.

On the other hand, Jos Electricity and Yola Electricity, emerged as the least performing DisCos during the q4,2024, having achieved collection efficiencies of 47 percent and 38 percent, collecting N11 billion and N7 billion respectively from customers.

A review of this data by Advisors Reports showed that the top three DisCos, which have managed to increase their collection efficiency, have done so by leveraging cutting-edge technologies and operational procedures.

These DisCos have successfully streamlined their billing processes, closing up the prepaid metering gap, and resulting in improved financial performance and enhanced customer satisfaction.

However, the remaining eight DisCos have struggled to keep pace, with their poor performance attributed to inadequate investment in infrastructure and metering.

This has led to continued issues with energy accounting procedures, resulting in a significant decline in their collection efficiency, which further exposed their level of inefficiencies and poor management.

Further checks by Advisors Reports showed that NERC’s quarterly report is prepared in compliance with Section 56(3) of the Electricity Act 2023, which mandates the Commission to submit quarterly reports of its activities to the President and the National Assembly.

The report analyses the state of the Nigerian Electricity Supply Industry (NESI) covering the operational and commercial performance, regulatory functions, consumer affairs as well as the Commission’s finances and staff development.