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The mandatory remittance of electricity distribution companies to the Nigerian Bulk Electricity Trading and the Market Operator dropped by N156bn in the first nine months of 2024, data from the Nigerian Electricity Regulatory Commission have revealed.
According to NERC, the financial remittances represent the cumulative upstream invoices payable by the DisCos to NBET and MO for transmission and administrative services provided during the period under review.
NERC disclosed that in the first quarter of 2024, the cumulative upstream invoice payable by DisCos stood at N114.12bn.
However, the power firms collectively remitted N110.62bn, of which N65.52bn went to NBET and N45.10bn to MO, leaving an outstanding balance of N3.50bn.
The remittance performance for that quarter was 96.93 per cent, compared to 69.88 per cent recorded in 2023/Q4.
The commission also noted that the average energy off-take by the DisCos at their trading points during this period was 3,283.87MWh/h, representing a decrease of -429.29MWh/h (11.56 per cent) compared to the 3,713.16MWh/h recorded in 2023/Q4.
In the second quarter of 2024, NERC reported that the DisCos generated N431.16bn in revenue, reflecting a 47.84 per cent increase, compared to the N291.62bn recorded in the first quarter.
“The total revenue collected by all DisCos in 2024/Q2 was N431.16bn out of N543.64bn billed to customers,” the commission stated.
However, the DisCos collectively remitted only N318.65bn to both NBET and MO out of the N399.53bn they were expected to pay during the period.
“The cumulative upstream invoice payable by DisCos was N399.53bn. Out of this amount, the DisCos collectively remitted N318.65bn (N271.87bn for NBET and N46.78bn for MO, leaving an outstanding balance of N80.88bn.
“This translates to a remittance performance of 79.76 per cent in 2024/Q2 compared to the 96.93 per cent recorded in 2024/Q1,” it added.
For the third quarter of 2024, the DisCos were expected to pay a total sum of N441.67bn to the two agencies. Of this amount, NBET was to receive N382.9bn, while MO was to receive N58.77bn.
“The total revenue collected by all DisCos in 2024/Q3 was N466.69bn out of N626.02bn billed to customers.
“This translates to a collection efficiency of 74.55 per cent, representing a decrease of -4.76pp compared to 2024/Q2 (79.31 per cent),” the commission revealed.
ctively remitted N318.65bn (N271.87bn for NBET and N46.78bn for MO, leaving an outstanding balance of N80.88bn.
“This translates to a remittance performance of 79.76 per cent in 2024/Q2 compared to the 96.93 per cent recorded in 2024/Q1,” it added.
For the third quarter of 2024, the DisCos were expected to pay a total sum of N441.67bn to the two agencies. Of this amount, NBET was to receive N382.9bn, while MO was to receive N58.77bn.
However, the DisCos remitted only N370bn—allocating N324.83bn to NBET and N45.18bn to MO, leaving an outstanding balance of N71.66bn, according to NERC. This indicates that the remittance to NBET and MO dropped by approximately N156bn over the three quarters of 2024.
NERC further noted that in the third quarter, DisCos’ revenue increased by 8.2 per cent to N466.69bn, compared to N431.16bn recorded in the second quarter.
“The total revenue collected by all DisCos in 2024/Q3 was N466.69bn out of N626.02bn billed to customers.“This translates to a collection efficiency of 74.55 per cent, representing a decrease of -4.76pp compared to 2024/Q2 (79.31 per cent),” the commission revealed.
In terms of revenue collection performance, NERC stated that Eko Disco recorded the highest collection efficiency of 84.4 per cent (N87bn) in the third quarter, followed by Ikeja Disco with 83.78 per cent (N83.55bn).
Conversely, Kaduna Disco recorded the lowest collection efficiency at 46.42 per cent (N11.4bn).
