Electricity Distribution Companies Increase Revenue Collection By N43 Billion

Electricity Distribution Companies Increase Revenue Collection By N43 Billion

By Wires Editor | The Trent on December 11, 2019
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energy

The electricity distribution companies, DisCos, have raised revenue collection by N43 billion in the last one year, while reducing their Aggregate Technical, Commercial and Collection (ATC&C) losses to 45 percent.

With this, the power firms have responded to the yearning of the Nigerian Electricity Supply Industry, NESI, stakeholders that claimed that the losses were still persistent due to the distributors refusal to invest in Capital Expenditures, CAPEX, to raise their revenues.

A statement by the Association of Nigerian Electricity Distributors, ANED, on Tuesday, December 11, 2019, said from October 2018 to June 2019, the 10 DisCos raised their energy revenue collection to N466 billion.

They also raised their collection efficiency (capacity to collect money for energy supplied to customers) by 67 percent, according to the statement.

This was higher than the N423 billion they collected from their customers between October 2017 and September 2018 when the collection efficiency was 65 percent.

Sunday Oduntan, the ANED’s director of research and advocacy, stated that, “This is a reflection of DisCos’ commitment to reduce losses, even within the context of the financial crisis of the power sector.”

Oduntan noted that the DisCos, while increasing their collections by N43 billion in a year, by a rate that represents over 10 percent of improvement, also raised billing efficiency by five percent during the period under review.

An analysis of the Key Performance Indicators, KPI, Report the DisCos submitted to the Nigerian Electricity Regulatory Commission, NERC, shows that the DisCos reduced their Aggregate Technical, Commercial and Collection (ATC&C) losses by 3.6 percent within one year – ATC&C was 49 percent in 2018 and has been reduced to 45 percent in 2019.

The reduction is even more significant, relative to a starting point of 54 percent, at handover, and within the context of liquidity challenges and lack of access to capital for investment.

On the energy delivered to the DisCos, ANED stated that customers were billed for 20,600 gigawatts hour, GWH, of energy from 2017 to 2018, amounting to N650 billion, of which N423 billion was collected.

However, for the period of 2018 through 2019, the DisCos recorded huge improvement in billings – they billed 21,650GWH of energy totalling N693 billion, and collected N466 billion.

Read more at The Nation

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