Discos achieve 86% billing efficiency in key metric — NERC
Nigeria's electricity sector has demonstrated significant commercial progress, with electricity distributors reaching a billing efficiency rate of 86 percent.
This information comes from the latest report by the Nigerian Electricity Regulatory Commission.
The report outlines how DisCos managed their energy billing and cash collection, which are critical indicators affecting liquidity and service delivery throughout Nigeria's power industry.
In September, the billing efficiency for DisCos increased to 86.43%, marking a 2.58% rise from the prior month.
This improvement was realized by billing N241.54 billion out of the N279.45 billion worth of energy received.
NERC credited this enhancement to better metering, energy accounting, and the verification of billing by leading DisCos.
This increased efficiency also led to a boost in cash collection, with DisCos recovering N196.26 billion of the N241.54 billion billed—indicating a 2.69 percent monthly uplift.
As a result, collection efficiency rose to 81.25 percent (an increase of 1.18 percent), representing a beneficial trend in addressing the sector's long-standing liquidity issues.
Despite ongoing challenges such as energy theft and inadequate infrastructure, DisCos have made notable strides in their financial performance.
Revenue recovery efficiency surged by 3.67 percent to 83.45 percent, indicating that they were able to collect N97.09 for every N116.34 kWh billed.
The factsheet identified Eko, Ikeja, and Abuja DisCos as the leading performers in the country regarding metering coverage.
These companies also excelled in billing and collection efficiency, thanks to their robust administrative processes and customer service frameworks, which emphasized a substantial performance disparity among the 11 distribution companies.
Aba DisCo achieved an exceptional billing efficiency of 102.85 percent, attributed to improved energy optimization and the reconciliation of legacy debts. Conversely, Benin, Port Harcourt, and Kano DisCos recorded moderate results but remained behind the industry's top achievers.
Jos, Kaduna, and Yola DisCos fell short, lagging below the sector average due to ongoing operational difficulties, insufficient metering, and high collection losses.
These commercial metrics play a crucial role in stabilizing Nigeria's power sector. Enhanced billing, collection, and cash recovery directly contribute to improving liquidity for DisCos and the entire value chain, from generation to transmission.
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