Power DisCos make N193.53b despite erratic supply

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Power DisCos make N193.53b revenue in Q3 2021

By Jeph Ajobaju, Chief Copy Editor

Electricity distribution companies (DisCos) collected N193.53 billion revenue from consumers in the third quarter ended September 2021 (Q3 2021), according to  Nigerian Electricity Regulatory Commission (NERC) figures just released.

Eleven DisCos made the sum despite regular blackouts across the country that have increased in frequency since the sector was privatised in November 2013.

“The total revenue collected by all Discos in 2021/Q3 was N193.53billion out of the N273billion billed to customers. This represents a collection efficiency of 70.89 per cent as compared to 68.89 per cent recorded in 2021/Q2,” the NERC said.

“The total revenue collected in 2021/Q3 rose by N8.24billion (+4.45 per cent) from N185.29billion recorded in 2021/Q2.

“The overall improvement in collection efficiency during the quarter under review could be attributed to the roll-out of meters under both the National Mass Metering Programme funded through the Central Bank of Nigeria [CBN], and the continuation of the Meter Asset Provider scheme.”

The NERC disclosed that the combined Market Operator invoice and Nigerian Bulk Electricity Trading (NBET) market remittance order adjusted invoice to Discos in 2021/Q3 was N208.54 billion for energy and administrative services.

Out of this amount, it explained, Discos collectively remitted N141.69 billion (N41.53 billion for MO and N100.16 billion for NBET), a remittance performance of 67.94 per cent in Q1 2021, with an outstanding balance of N66.85billion.

Out of the total N197.64 billion invoice issued by NBET to Discos, NBET was expected to receive N153.90 billion under the MRT Order but it got only N100.17 billion.

“Overall, the total Disco remittance performance to NBET was 65.09 per cent of the expected MRT for 2021/Q3 relative to 66.4 per cent recorded in the preceding quarter.”

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Grid-connected power stations

There were 26 grid-connected power stations comprising 10 privatised legacy power plants, nine National Integrated Power Project plants, and seven Independent Power Plants, according to the NERC, per The PUNCH.

Four of the grid-connected plants were hydropower plants, the rest gas-fired thermal plants, and the available generation capacity of the 26 plants was 5,301.32 megawatts (mw), a 9.45 per cent increase from 4,843.58 mw in 2021/Q2.

The NERC said the stability of the grid network declined slightly with one total system collapse on 28 July 2021 and on partial collapse on 23 August 2021, against one total collapse in 2021/Q2.

“To improve the grid stability in the subsequent quarter and beyond, the commission continues to enforce and monitor compliance by Discos and TCN (Transmission Company of Nigeria) with respect to the execution of service level agreements to ensure further grid discipline.”

Jeph Ajobaju:
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