By Ediri Ejoh

The total amount billed to electricity customers by Distribution Companies (DISCOs) has dropped by 5.4% to N213.62 billion in October 2024 from N225.80 billion in September 2024.

In same vein, DISCOs’  total revenue collected declined by 5.0% to N163.07 billion in October 2024 from N171.58 billion in September 2024.

This came as the DISCOs recorded 76.33 percent total revenue collection efficiency.

Revealing this in its latest data from the Nigerian Electricity Regulatory Commission, NERC, it showed that billing efficiency rose 84 percent in October against 82.36 percent recorded in September 2024.

In terms of revenue recovery performance, NERC stated that average allowed tariff for October stood at N115.74k/ kwh, while actual collection stood at N86.62k/ kwh, resulting in an overall recovery efficiency of 74.84 percent.

Also, in October, total energy received was 2,361.43 GWh, while the total energy billed was 1,988.52 GWh, representing a billing efficiency of 84.21 per cent.

While operators in the power industry have consistently blamed the illiquidity in the sector to shortfalls in billing collection, the low investment in the Nigerian power sector among others. 

However, electricity consumers believe they are over-billed and that they actually pay for ‘darkness’ when they are billed for unreliable power supply, especially those on the estimated billing platform.

Meanwhile, to address this menace, the regulator had issued a statement tagged ‘NERC Reviews Order on Performance Monitoring Framework for DISCOs’, stating that : “Following the issuance of an Order on Performance Monitoring Framework for Electricity Distribution Companies on 5th July 2024, the Nigerian Electricity Regulatory Commission (NERC) has issued an Addendum – 1 to this Order, effective 23rd December 2024.

“The order seeks to ensure compliance with the Key Performance Indicators (KPIs). These include accountability by the DISCOs’ management, increased operational performance, improved energy delivery to customers, and customer satisfaction.

“In addition to the performance obligations and customer service guidelines in the earlier order to the DISCOs, Addendum – 1 reviewed three of the KPIs as follows:

Penalty for default in energy offtake reviewed from one month to two months per quarter: Failure to offtake up to 95 percent of available nominated energy in two out of the three months per quarter attracts a downward adjustment of DISCOs’ administrative operational expenditure by 5 percent for the next quarter.

“Failure in reporting using the Uniform System of Accounts reviewed from monthly to two months per quarter: Failure to meet two months compliance targets attracts enforcement actions including withdrawal of “Fit and Proper” approval of the DISCO’s Chief Finance Officer or its equivalent position.

“Timeline to comply with complaints resolution through NERC Contact Centre and NERC HQ reviewed from two months compliance target by DISCOs. NERC now expects 75 percent resolution rate for all complaints within a quarter.

“NERC shall issue Rectification Directives for all compliance issues for the three affected KPIs for Q3 and Q4 2024. The updated enforcement framework contained in the Addendum – 1 shaIl be applied from Q1 2025.