DisCos achieve 94.61% energy offtake in Q4 2024 — NERC
By Seun Ibiyemi
The Nigerian Electricity Regulatory Commission (NERC) has reported that electricity distribution companies (DisCos) collectively attained an energy offtake rate of 94.61 per cent in the fourth quarter (Q4) of 2024.
This update, published in the Commission’s recently released Q4 2024 Report, also showed a 4.14 percentage point increase compared to the offtake performance recorded in Q3 2024.
The report revealed that five DisCos exceeded the 95 per cent benchmark in absorbing electricity allocated to them under the Power Capable Capacity (PCC) framework.
Benin DisCo led the group, recording a remarkable 99.57 per cent offtake—up from 98.01 per cent in the previous quarter. It was followed by Enugu DisCo with 96.82 per cent (a slight drop from 98.65 per cent), Port Harcourt DisCo at 96.62 per cent (up from 95.11 per cent), Ibadan DisCo with 96.60 per cent (previously 94.70 per cent), and Ikeja DisCo, which improved significantly from 89.56 per cent to 96.15 per cent.
Conversely, some DisCos struggled to meet the minimum offtake standard. Yola DisCo posted the lowest performance, taking only 76.89 per cent of its allocated capacity. Kaduna DisCo followed, with 87.68 per cent (up from 81.97 per cent), while Abuja DisCo posted 91.89 per cent (a rise from 86.52 per cent). Several other DisCos also fell short of the regulatory threshold.
The report noted that while Benin, Ikeja, Port Harcourt, and Ibadan DisCos all showed quarter-on-quarter improvements, Enugu DisCo experienced a slight dip in its performance.
In the Commission’s words, “At an aggregate level, the energy offtake performance of the DisCos increased by +4.14pp between 2024/Q4 and 2024/Q3.”
A key insight from the report was the observable pattern whereby “a reduction in available PCC across two quarters often results in higher offtake performance, while an increase in available PCC tends to produce the opposite effect.” This dynamic reflects the interplay between electricity generation volumes and the capacity—or willingness—of DisCos to absorb the energy allocated to them.
NERC made it clear that enforcement measures have already been triggered under the Performance Monitoring Framework Orders (NERC/2024/086 – 096), which were issued on 5 July 2024. These directives require all DisCos to utilise at least 95 per cent of their available PCC each quarter or face regulatory penalties.
“In line with these provisions, the Commission has commenced enforcement proceedings against DisCos that did not meet the minimum offtake requirement for 2024/Q4,” the report stated.
This enforcement initiative reflects NERC’s growing determination to drive operational discipline and ensure greater accountability within Nigeria’s power distribution sector.
Energy offtake performance is a critical indicator in the Nigerian electricity market. It influences the overall flow of electricity, the financial liquidity of the Nigerian Electricity Supply Industry (NESI), and the quality of service delivered to end-users.
When a DisCo fails to utilise its full allocation, the ripple effects are far-reaching. It not only leads to under-utilisation of generated power, but also inflicts economic strain across the entire electricity value chain—from generation companies to transmission operators.
