Amid economic hardship, electricity DisCos make N150bn in June
…Army, Police, MDAs owe Eko Disco N42bn – BPE
By Seun Ibiyemi
Despite the economic hardship in the country, electricity distribution companies across the country have collected N150.86 billion in revenues in June 2024 representing a collection efficiency rate of 85.44 percent.
The fact sheet on electricity distribution companies’ performance in the month published by the Nigeria Electricity Regulatory Commission (NERC) stated that Discos across the country billed customers up to N176.57 billion.
According to the factsheet, Ikeja DisCo received the highest revenue for the month at N30.06 billion representing a billing efficiency rate of 102.44 percent.
It was followed by Eko disco which recorded a billing efficiency ratio of 97.07 percent collecting up to N26.37 billion.
While Benin DisCo recorded the third highest billing efficiency of 89.49 percent, Abuja disco collected the third highest revenue at N24.29 billion.
On the other hand, Yola DisCo recorded the lowest biggest revenue collection efficiency rate as well as lowest revenue among electricity distribution companies for the month at 60.81 percent. This was followed by Jos and Kaduna DisCos at 62.03 percent and 66.46 percent respectively. Yola, Jos and Kaduna DisCos collected N3.08, N4.96 and N5.01 billion respectively.
In terms of energy received and billed, the 11 electricity distribution companies received 2,190.12 GWh of electricity and billed up to 1,850.73GWh. This represents an energy billing efficiency rate of 85.44 percent.
In this regard, Enugu DisCo recorded the highest billing efficiency rate at 95.63 percent billing 153 GWh out of 160 GWh of energy billed. This was followed by Yola and Ibadan DisCos respectively with billing efficiency rates of 92 percent and 90 percent respectively.
Furthermore, Kaduna, Jos and Kano DisCos recorded the lowest energy billing efficiency rate in the month at 63.7 percent, 71.49 percent and 79.03 percent respectively.
The DisCos revenue collection of N150 billion represents a significant increase from the period before the electricity tariff increase for Band A users.
In April, the Nigeria Electricity Regulatory Commission (NERC) announced an over 200 percent hike in electricity tariffs for Band A users who constitute about 17 percent of electricity consumers in the country.
According to the NERC, the tariff increases only affected customers who enjoy at least 20 hours of electricity daily.
In February, all Discos collected N97.01 billion out of the total billed amount of N113.05 billion. Ikeja Disco achieved the highest revenue collection efficiency for the month at 114.64 percent, collecting N19.48 billion from the N17.08 billion billed to customers.
Following Ikeja were Eko and Abuja Discos, with revenue collection efficiencies of 99.24 percent and 87.26 percent, respectively.
In the first quarter of 2024, the total revenue collected by Discos was N291.62 billion, a slight decrease from the N294.95 billion collected in Q4 2023.
…Army, Police, MDAs owe Eko Disco N42bn – BPE
Meanwhile, Eko Electricity Distribution Company Plc has clarified that the ministries, departments, and agencies of the Federal Government, including the military, owe the power distribution company N42bn as the cost of electricity consumed and not N144bn.
This was announced by the Bureau of Public Enterprises in a statement issued by the Head of Public Communications, Amina Othman.
According to the statement, the Disco affirmed that its total outstanding debt was N144bn, of which the MDAs and the military owe N42bn.
“The Eko Electricity Distribution Company Plc has clarified that contrary to earlier reports, the aggregate outstanding debt owed by consumers is N144bn, out of which, ministries, departments, and agencies including the military owe N42bn,” Othman stated.
The statement said this was against prior reports that the MDAs, including the army, police, and other government agencies, were owing N144bn and had refused to pay.
“In a statement, the Disco said the clarification became necessary for proper reportage on the matter and to put the records straight,” she noted.
Recall that during a recent oversight visit by members of the House of Representatives Committee on Privatisation and Commercialisation, led by its Chairman, Ibrahim, the acting Managing Director of the EKEDC, Mrs Rekhiat Momoh, among other things, had informed the members about the legacy debts owed the company by MDAs.
The committee had reported the acting MD as stating that the company was owed N144bn by MDAs within its operational area, saying she mentioned that the military, police, and various state government agencies failed to settle their debts, creating financial difficulties for the distribution company.
Recall that electricity distribution companies in Nigeria recently lamented that no fewer than 20 of the 36 state governments in the country have refused to pay their electricity bills.
The Discos said some states owed electricity bills consumed by the state house or the secretariat.
