DisCos Generate N509.84b, Remit N378.93b In Q4, 2024 As Collection Efficiency Improves – NERC Report
By SUNDAY ABBA, Abuja
The Nigerian Electricity Regulatory Commission (NERC) has announced that Electricity Distribution Companies (DisCos) collected N509.84 billion in the fourth quarter (Q4) of 2024 out of the
N658.40 billion billed to customers
The Commission’s report for the quarter (October, November, and December, 2024), published on its website on Monday shows a +1.51pp increase in billing efficiency relative to the 82.15% recorded in 2024/Q3. The development translates to a collection efficiency of 77.44%, representing an increase of +2.89pp compared to 2024/Q3 (74.55%).
Eko DisCo maintained its lead with the highest collection efficiency at 90%, followed by Ikeja DisCo at 82.63%, both
retaining their top positions from Q3 2024.
Jos DisCo recorded the lowest efficiency at 49.68%, reflecting persistent challenges in revenue collection.
The report highlighted that eight DisCos
improved their collection efficiency between Q3 and Q4 of 2024, with Yola and Kano DisCos recording the most significant gains.
However, three DisCos saw declines, with Jos and Abuja DisCos experiencing the sharpest drops in efficiency.
NERC attributed the overall improvement to: enhanced metering initiatives, reducing energy theft and improving billing accuracy; stricter enforcement of collections by some DisCos and Increased customer compliance due to regulatory measures.
Despite the progress, the report noted
that non-payment and energy theft remain major hurdles, particularly in regions with lower collection rates. The commission reiterated its commitment to sanctions and incentives to drive further improvements in 2025.
Also in the same quarter, the DisCos collectively remitted a total sum of N378.93 billion from a payable invoice of N408.86 billion, leaving an outstanding balance of N29.92 billion.
According to the report, the cumulative upstream invoice payable by DisCos was ₦408.86 billion, consisting of ₦360.97 billion for DRO-adjusted generation costs from NBET and ₦47.89 billion for transmission and administrative services by the Market Operator (MO).
“Out of this amount, the DisCos collectively remitted a total sum of ₦378.93 billion (₦336.63 billion for NBET and ₦42.30 billion for MO) with an outstanding balance of ₦29.92 billion. This translates to a remittance performance of 92.68% in 2024/Q4 compared to the 83.77% recorded in 2024/Q3,” the report said.
It also disclosed that in the period, the six (6) international bilateral customers purchasing power from the grid connected GenCos made a cumulative payment of $5.21 million against the $14.05 million invoice issued to them by the MO for services rendered in 2024/Q4.
Similarly, it said, the domestic bilateral customers made a cumulative payment of ₦1,252.58 million against the ₦1,977.02 million invoice issued to them by the MO for services rendered in 2024/Q4 3.
The report said, in 2024/Q4, the average energy offtake by DisCos at their trading points was 3,360.77MWh/h out of the available PCC of 3,552.26MWh/h, translating to an overall offtake performance of 94.61%. The energy offtake during the quarter (3,360.77MWh/h) represents a decrease of 84.36MWh/h (-2.45%) compared to the 3,445.13MWh/h recorded in 2024/Q3.
It said the total energy received by all DisCos within the period was 7,420.58GWh, while the energy billed to end-use customers was 6,207.84GWh, translating into an overall billing efficiency of 83.66%.
The Aggregate Technical, Commercial and Collection (ATC&C) Loss across all the DisCos, according to the report, was 35.22%, comprising technical and commercial loss (16.34%) and collection loss (22.56%).
The ATC&C loss of 35.22% was +10.44pp higher than the MYTO target (24.78%) and translates to a cumulative revenue loss of ₦139.08 billion across all DisCos. The ATC&C loss decreased by -3.88pp (improved performance) compared to 2024/Q3 (39.10%).
‘’Yola and Eko DisCos achieved their target ATC&C, as provided in the MYTO during the quarter. The other DisCos failed to achieve their target ATC&C, with Kaduna DisCo recording the worst underperformance relative to the target ATC&C (Actual – 60.65% vs. target – 25.00%),’’ the report disclosed.
On available power generation in the country, the report said in 2024/Q4, there were twenty eight (28) grid-connected power plants consisting of nineteen (19) gas, five (5) hydro, two (2) steam, and two (2) gas/steam-powered plants.
It said, for this quarter, the average available generation capacity of the grid connected power plants was 5,296.89MW, adding that the average available generation capacity across the grid-connected plants increased by 195.98MW (+3.84%) from the 5,100.90MW recorded in 2024/Q3 to 5,296.89MW in 2024/Q4 .
‘’Fifteen (15) power plants recorded increased (+3.84%) from the 5,100.90MW recorded in 2024/Q3 to 5,296.89MW in 2024/Q4.
The report said that ‘’the average hourly generation on the grid in Q4, 2024 was 4,207.41MWh/h, which translates to a total generation of 9,289.95GWh. The average hourly generation of grid connected power plants decreased by 72.83MWh/h (-1.70%) from 4,280.24MWh/h in 2024/Q3.
It said, for this quarter, the average available generation capacity of the grid connected power plants was 5,296.89MW, adding that the average available generation capacity across the grid-connected plants increased by 195.98MW (+3.84%) from the 5,100.90MW recorded in 2024/Q3 to 5,296.89MW in 2024/Q4.
The total electricity generated in the quarter also decreased by 160.81GWh (-1.70%) from 9,450.76GWh in 2024/Q3 to 9,289.95GWh. The decrease in generation during the quarter was primarily due to the decrease in energy offtake by the grid-connected customers (including DisCos) compared to 2024/Q3,’’ it revealed.
On grid performance, it said the quarter’s average lower daily (49.39Hz) and average upper daily (50.91Hz) system frequencies were outside the normal operating limits (49.75Hz – 50.25Hz) but remained within the lower and higher bound stress limits (48.75Hz – 51.25Hz).
It added that the average lower daily (300.21kV) and average upper daily (349.45kV) system voltages were however outside the limits prescribed in the grid code (313.50kV – 346.50kV).
The report said the Commission continues to push the SO to improve its system coordination activities to avert the system risk posed by the continuous operation of the grid outside the normal operating limits.
It said Three (3) incidents of total collapse and two (2) incidents of partial collapse occurred on the national grid in 2024/Q4, adding that the partial collapses were recorded on 14 October and 05 November 2024, while the total collapses were recorded on 19 October, 07 November and 11 December 2024, respectively.
The report noted that as contained in section 20.1 of the Grid Code, the SO is expected to submit to the commission a detailed report containing the root causes of the incidents leading to the system disruptions and mitigation plans to avoid a recurrence of similar incidents.
Also in line with the Electricity Act 2023 which seeks to further deregulate Nigerian Electricity Supply Industry (NESI), NERC issued a total of 70 licences, permits and certifications in continuing efforts at deregulating the to enhance easy access to power supply.
The breakdown of the licences, permits and certifications issued include: One off-grid generation licence with a total nameplate capacity of 2.63MW.
Three new electricity trading licences, four captive generation permits with a gross capacity of 22.50MW, five registration certificates for mini-grids, 24 permits for mini-grids, 18 certifications for Meter Service Providers and 15 permits for Meter Asset Providers.
Towards strengthening compliance and enforcement in the NESI, the Commission issued 14 rectification directives (RD) and 16 notices of intention to commence enforcement (NICE) to licensees for different breaches/defaults during the quarter.
