Ikeja, Eko DisCos Lead Revenue Collection Performance In September

Ikeja Electric (IE) and Eko Electricity Distribution Company (EKEDC) have remained resilient especially, in revenue collection among other Electricity Distribution Companies (DisCos).
This is evident in the September 2024 report released by the Nigerian Electricity Regulatory Commission (NERC) which showed a revenue shortfall of N54.22 billion, across all DisCos.
The regulator attributed the shortfall to inefficiencies in DisCos collection systems.
According to the Commercial Performance Report for Distribution Companies (DisCos) for September 2024, released by the NERC, out of total billings of N225.80 billion, the DisCos collectively managed to collect N171.58 billion, reflecting a collection efficiency of 75.99 per cent, which marks a 4.92 per cent, decline compared to August 2024.
The revenue recovery efficiency of the DisCos, in the month under review, stood at 73.45 per cent, as actual average collections of N85.01 per kilowatt-hour (kWh) fell short of the N115.74/kWh allowable tariff.
However, Ikeja Electric emerged the best-performing DisCo, achieving a collection efficiency of 96.75per cent. Though the company recorded a drop of 7.26 per cent compared if compared with August performance.
The company collected N35.20 billion out of N36.38 billion billed, with a revenue recovery efficiency of 88.55 per cent attaining N101.57/kWh against an allowable tariff of N114.70/kWh.
Following IE is Eko DisCo followed with 81.40 per cent collection efficiency, slightly improving by 1.58 per cent compared to the previous month.
The DisCo collected N31.16 billion out of N35.28 billion billed, achieving a revenue recovery efficiency of 88.36 per cent at N104.56/kWh compared to the allowable N118.33/kWh.
Abuja DisCo recorded a slight improvement in collection efficiency, achieving 81.35 per cent up by 0.71 per cent from the previous month.
It collected N28.28 billion from a total billing of N43.77 billion, achieving a revenue recovery efficiency of 83.15 per cent at N97.54/kWh, compared to its allowable tariff of N117.31/kWh.
On the other hand Ibadan DisCo showed significant improvement, with collection efficiency increasing by 8.06 per cent to 84.24 per cent, as it collected N21.99 billion from N26.10 billion billed.
However, its recovery efficiency stood at 72.18 per cent with an average collection of N84.04/kWh compared to the allowable tariff of N116.43/kWh.
Benin DisCo recorded 82.46 per cent collection efficiency, collecting N15.22 billion from billings of N18.45 billion, but achieved a recovery efficiency of only 67.29 per cent.
Aba DisCo achieved a revenue recovery efficiency of 85.42 per cent having achieved N83.29 per kilo Watts Hour, despite N97.50/kWh of allowable average tariff for the month in view.
The company recorded a collection efficiency of 71.57 per cent having collected N1.43 billion revenue out of a total of N1.99billion for the month in view.
However, other DisCos struggled to achieve meaningful collection rates.

While Yola DisCo, which recorded a 36.71 per cent collection efficiency, collected N1.48 billion out of N4.04 billion billed, and achieved a recovery efficiency of 47.35 per cent, with N56.63/kWh collected against N119.00/kWh allowable tariff.
Jos DisCo reported a collection efficiency of 43.49 per cent, a drop of 7.20 per cent, collecting just N5.06 billion out of N11.63 billion billed.

Its recovery efficiency was 42.41 per cent, with an average collection of N49.07/kWh against an allowable tariff of N115.70/kWh. Kaduna DisCo fared slightly better, with a collection efficiency of 53.73 per cent down by 3.43 per cent from August.
The DisCo collected N4.42 billion out of N8.22 billion billed but achieved a low recovery efficiency of 35.28%, with an average collection of N39.86/kWh compared to its allowable N113.00/kWh.

Unfortunately, Kano DisCo underperformed in the period under review as it collected N3.07 billion from billings of N14.95 billion, achieving a recovery efficiency of 20.83 per cent with an average collection of N24.14/kWh against N115.89/kWh allowable tariff.