Electricity distribution companies (DisCos) remitted N706.73 billion in 2023 out of a total invoice of N858.03 billion issued to them for energy received from the Nigerian Bulk Electricity Trading (NBET) and for service charges by market operator (MO).
The Nigerian Electricity Regulatory Commission (NERC) in its 2023 annual report said that the country’s electricity market recorded a total deficit of N151.30 billion in 2023.
“This payment translates to an overall remittance performance of 82.37 per cent,” NERC said.
The report also highlighted that the total billing to electricity consumers by DisCos reached N1,463.24 billion, with only N1,077.51 billion collected, leaving an outstanding debt of N385.73 billion and a collection efficiency of 73.64 per cent.
“In 2023, a total invoice of N858.033 billion was issued to all the DisCos for energy received from NBET and for service charges by the MO, out of which a sum of N706.73 billion was settled by DisCos, leaving a total deficit of N151.30 billion in the market. This payment translates to an overall remittance performance of 82.37 per cent.
“The total billings to electricity consumers by the DisCos was N1,463.24 billion of which only N1,077.51 billion was collected, leaving a total outstanding of N385.73 billion and corresponding to a collection efficiency of 73.64 per cent. Market’’, the report stated.
NERC disclosed that Eko and Yola DisCos reported high remittance performances to NBET of 105.76 per cent and 105.14 per cent, respectively. Conversely, Kaduna DisCo posted the lowest remittance performance at just 17.59 per cent.
It added that in terms of remittances to the MO, Yola, Eko, and Ikeja excelled with rates of 90.91 per cent, 90.85 per cent, and 90.38 per cent, respectively, while Kaduna again lagged with a dismal 10.75 per cent.
“Eko and Yola DisCos had high remittance performances of 105.76 per cent and 105.14 per cent respectively to NBET in 2023 while Kaduna achieved the lowest remittance performance to NBET (17.59 per cent).
According to the commission, a N685.69 billion invoice was issued by NBET in 2023 while MO issued N172.33 billion in the same year.
“Out of the N685.69 billion invoice issued by NBET in 2023, DisCos remitted N578.43 billion translating to a remittance performance of 84.34 per cent,” NERC said.
“The top performing DisCos were Eko (105.76 per cent), Yola (105.24 per cent), Ikeja (96.20 per cent), Benin (95.15 per cent) and Ibadan (93.11 per cent).
“Conversely, Kaduna DisCo recorded the lowest remittance performance to NBET in 2023 (17.59 per cent).
“The MO invoice in 2023 was N172.33 billion, and the DisCos remitted N128.40 billion, translating to a 74.51 per cent remittance performance rate. The top-performing DisCos were Yola (90.91 per cent), Eko (90.85 per cent) and Ikeja (90.38 per cent) with remittances above 90 per cent to the MO in 2023.”
The NERC said Kaduna DisCo recorded the lowest remittance of 10.75 per cent to MO in 2023.
On January 9, the NERC dissolved the board of directors of the Kaduna Electricity Distribution Company (KAEDC).
The dissolution followed the DisCo’s inability to pay its N110 billion debt owed to the Nigerian Electricity Supply Industry (NESI), according to a statement jointly signed by Sanusi Garba, NERC’s chairman, and Musiliu Oseni, his vice.
