The Nigerian Electricity Regulatory Commission (NERC) has stated that electricity distribution companies (DisCos) recorded 95.21 percent market remittances in the second quarter of 2023.
This represents the highest remittance by the distribution companies so far.
The commission, in its just published ‘Electricity on Demand; report, on Tuesday, indicated that the combined upstream bill that DisCos were expected to pay totaled N194.69 billion, comprising N154.04 billion for generation costs from the Nigerian Bulk Electricity Trading (NBET) and N40.65 billion for transmission and administrative services facilitated by the Market Operator (MO).
Out of this amount, the DisCos remitted a total of N185.36 billion (N152.48bn for NBET and N32.88bn for the MO), leaving an outstanding balance of N9.32 billion, representing a remittance performance of 95.21 percent in Q2 2023 compared to the 67.43 percent recorded in the previous quarter.
Industry analysts believe that the improved remittance by the DisCos in the quarter indicates that they did better in fulfilling their financial obligations to NBET and MO, ensuring a higher percentage of payments made in relation to the total amount due.
On revenue generation, the report indicated that the DisCos collected a total of N267 billion in revenue in Q2 2023 reflecting a collection efficiency of 75.54 percent for the quarter out of the total billing value amounting to N354.61 billion.
The commission reported that the improved revenue generation capacity showed an improvement of 6.79 percent when compared to the first quarter of 2023 when the collection efficiency stood at 68.75 percent.
The NERC linked the boost in collection efficiency to two main factors, namely the increased metering of consumers, which ensured a more accurate measurement of electricity consumption, as well as the DisCos’ sundry collection campaigns targeting pre-paid customers, which encouraged timely and complete remittances.
