Twelve electricity distribution companies(DisCos) billed customers a total of N238.21 billion for electricity consumed in last December, the Nigerian Electricity Regulatory Commission (NERC),has said.
Of the total billings of ₦238.21 billion, DisCos only managed to collect ₦177.96 billion, resulting in a collection efficiency of 74.71 percent,leaving a gap of N60.25 billion uncollected,the Commission said in its fact sheet.
The average allowed tariff for December was ₦116.18 per kWh, while the actual average collection was ₦82.50 per kWh, representing a recovery efficiency of 71.01 per cent.
DisCos are only recovering approximately 71 percent of the revenue they are allowed to collect based on approved tariffs,according to the estimate.
Eko DisCo stands out with the highest billing efficiency of 89.03 per cent and collection efficiency of 91.50 per cent. Ikeja DisCo also demonstrates strong performance with a billing efficiency of 83.41 percent and a recovery efficiency of 80.71 percent.
Besides Kaduna DisCo, has a recovery efficiency of only 31.87 per cent, while Aba DisCo’s recovery efficiency is 45.91 percent.
These low recovery rates suggest challenges in customer payment compliance and potential issues with metering and billing accuracy, the report said.
The report said the inability to collect billed revenue impacts the entire electricity value chain and imits the DisCos’ ability to invest in infrastructure upgrades, maintain their networks, and pay for the electricity they purchase from generation companies (GenCos).
This affects the quality and reliability of electricity supply to consumers,it added.
According to the report, DisCos received a total of 2,705.86 GWh of energy in December, billing 2,257.83 GWh to customers, resulting in an overall billing efficiency of 83.44 per cent.
It noted that this represents a slight increase of 0.11 per cent compared to November 2024, indicating a positive trend in DisCos’ ability to accurately meter and bill customers.
The report also highlights the relative change in performance compared to November 2024.
Yola DisCo recorded the highest relative change in billing efficiency, with a 10.74 percent increase. However, the report also indicates that some DisCos experienced a decline in performance compared to the previous month.
