DisCos Make Headway in Curtailing Operational Losses, Q2’23 Marks Notable Decline

by Oluwatosin Racheal Alabi

In an impressive rebound, Nigeria’s electricity distribution companies, known as DisCos, have improved their revenue collection strategies. They have significantly reduced losses in diverse operational areas.

The National Electricity Regulatory Commission (NERC) verified these advancements. They noted a substantial 7.98 percentage point decrease in the Aggregate Technical, Commercial, and Collection Loss (ATC&C) for all 11 DisCos in Nigeria. The decline, from 46.39% in Q1’23 to 38.41% in Q2’23, is significant.

NERC’s detailed Q2’23 report shows technical and commercial losses at 18.47 percent, with collection losses at 24.46 percent. These figures indicate that for every N100 worth of energy a DisCo received, an unrecovered N38.41 resulted, due to factors such as inefficient networks, energy theft, and non-payment.

The DisCos have shown financial upturns from Q1’23 to Q2’23. Particularly, Kaduna, Ikeja, Ibadan, Eko, and Enugu DisCos reported considerable drops in ATC&C losses. The Commission’s partnership with DisCos, aimed at intensifying customer enumeration and revenue assurance, bodes well for future loss reduction.

During the quarter, NERC issued new trading licenses and approved captive power generation permits, adding 20.06MW to the grid. Also noteworthy is the authorization of ten mini-grid permits and certifications for six new metering entities.

While all DisCos recorded lower energy off-take compared to their Partially Contracted Capacity, Eko DisCo stood out with a 116.90% performance. A quarter-to-quarter review shows a modest rise in overall energy off-take among DisCos, though individual performances varied.

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