The Nigerian Electricity Regulatory Commission (NERC) stated on Monday that electricity distribution firms earned N193.53 billion from customers throughout the country in the third quarter of 2021.
Power supply in Nigeria has been unpredictable since the industry was privatized in November 2013, with millions of users constantly complaining about inadequate energy supply and countrywide outages.
However, the power sector regulator revealed in its recently issued third quarter 2021 report that the 11 energy distribution businesses earned more than N193 billion during the three-month period.
Commenting on collection efficiency by the Discos, the commission said, “The total revenue collected by all Discos in 2021/Q3 was N193.53bn, out of the N273bn billed to customers.” This represents a collection efficiency of 70.89 per cent as compared to the 68.89 per cent recorded in 2021/Q2.
“The total revenue collected in 2021/Q3 rose by N8.24bn (+4.45 per cent) from N185.29bn recorded in 2021/Q2. The overall improvement in collection efficiency during the quarter under review could be attributed to the roll-out of meters under both the National Mass Metering Programme funded through the Central Bank of Nigeria, and the continuation of the Meter Asset Provider scheme.”
On market remittance, the NERC stated that the combined market operator invoice and Nigerian Bulk Electricity Trading (NBET) Plc’s market remittance order adjusted invoice to Discos in 2021/Q3 was N208.54bn for energy and administrative services.
It stated that out of this amount, the Discos collectively remitted a total sum of N141.69bn (N41.53bn for MO and N100.16bn for NBET), representing a remittance performance of 67.94 per cent during the quarter, with an outstanding balance of N66.85bn.
For the remittance to NBET, the NERC stated that out of the total invoice of N197.64bn issued by NBET to Discos, NBET was expected to receive N153.90bn under the MRT Order but it received only N100.17bn during the quarter.
“Overall, the total Disco remittance performance to NBET was 65.09 per cent of the expected MRT for 2021/Q3 relative to 66.4 per cent recorded in the preceding quarter,” it stated.
Providing updates on available generation capacity, the commission stated that during the third quarter of 2021, there were 26 grid-connected power stations consisting of 10 privatised legacy power plants, nine National Integrated Power Project plants, and seven Independent Power Plants.
It said four of the grid-connected plants were hydropower plants, while the rest were gas-fired thermal plants, adding that the available generation capacity for the 26 plants was 5,301.32 megawatts, representing a 9.45 per cent increase from 4,843.58MW1 recorded in 2021/Q2.
On the performance of the national grid, it stated that the stability of the grid network declined slightly with one total and partial system collapse that occurred on July 28 and August 23 2021 respectively, as against one total collapse in 2021/Q2.
The NERC stated that to improve the grid stability in the subsequent quarter and beyond, the commission continues to enforce and monitor compliance by Discos and TCN (Transmission Company of Nigeria) with respect to the execution of service level agreements to ensure further grid discipline.
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