DisCos Q1 revenue collection hits N116.9bn
September 13, 2019935 views0 comments
The 11 distribution companies (DisCos) collected N116.9 billion from customers out of the total bill of N182.8 billion in the first quarter (Q1) of this year, it was learnt on Thursday.
Despite the increase in the amount of energy received by DisCos and a higher billing efficiency recorded relative to the preceding quarter, there is a 0.5 percent decrease in the total revenue collected by the DisCos in Q1 2019 when compared to N117.5 billion collected in the Q4 of last year.
This is contained in the Nigerian Electricity Regulatory Commission (NERC) Q1 2019 report obtained from the commission’s website on Thursday.
“The overall collection efficiency for all DisCos decreased to 64 percent in Q1 2019 representing a four percentage point decrease from the 68per cent collection efficiency recorded in 2018/Q4. The collection efficiency implies that for every N10 worth of energy billed to customers by DisCos in the first quarter, N4.0 remained unrecovered from customers as and when due,” the report said.
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In appraising individual performances of the Discos, the Commission said Ikeja DisCo had the highest collection efficiency of 84 percent followed by Eko DisCo with 80.3 percent. It also noted that on the contrary, Kaduna DisCo has the lowest collection efficiency of 39.6 percent. It is noteworthy that Ikeja and Kaduna DisCos retained the same ranking during Q4 2018. On a quarter-on quarter basis, Eko DisCo recorded the highest improvement in collection efficiency moving from 70.1 percent to 80.3 percent (10.2 percentage point increase).
“A major factor contributing to low collection efficiency is customers’ dissatisfaction with estimated billing which often resulted in an unwillingness to pay, the Commission, during the quarter, continued to monitor the procurement of meter asset providers by DisCos in line with the guidelines provided in the Meter Asset Providers (MAP) Regulations. The MAP Regulation was issued by the Commission,” the report said.