₦airaland Forum

The collection efficiency of power distribution companies witnessed a drop in the first quarter of the year despite an increase in the total billing to electricity consumers by the power firms .
In the first quarter , the electricity bill to customers by the 11 power distributors rose to N 182. 8 bn , but the Discos only recorded an aggregate collection of N 116. 9 bn , representing 64 . 1 per cent collection efficiency .
This indicated a drop when compared to their performance in the fourth quarter of 2018 , as it was gathered that in Q4 of 2018 , the power firms billed customers a total of N 172. 5 bn and collected the sum of N 117. 5 bn , representing 68 . 1 per cent collection efficiency .
An analysis of their performances in the fourth quarter of 2018 and the first quarter of this year , based on data obtained from the Nigerian Electricity Regulatory Commission on Sunday in Abuja , also showed that the remittances of the Discos to the power market dropped in Q1 2019 .
In its 2019 first quarter report , NERC stated that the financial viability of the Nigeria Electricity Supply Industry was still the most significant challenge threatening the sustainability of the power sector .
It noted that as reported in the preceding quarterly reports , the liquidity challenge was partly due to the non - implementation of cost - reflective tariffs , high technical and commercial losses exacerbated by energy theft , and consumers ’ apathy to payments under the widely prevailing practice of estimated billing .
The regulator said , “ The total billing to electricity consumers by the 11 Discos rose to N 182. 8 bn in the first quarter of 2019 but only an aggregate collection of N 116. 9 bn , representing 64 . 1 per cent collection efficiency was achieved , a 4 . 1 percentage points decrease from the last quarter of 2018 .
“ The level of collection efficiency during the quarter under review indicates that a sum of N 3 . 6 out of every N 10 worth of energy sold during the first quarter of 2019 remains uncollected as and when due . ”
The commission explained that the severity of the liquidity challenge in NESI was further reflected in the settlement rate of energy invoices issued by the Nigerian Bulk Electricity Trading Company and the Market Operator to Discos , as well as the payment by special and international customers.
It said , “ During the first quarter of 2019 , the 11 Discos were issued a total invoice of N 190. 1 bn for energy received from NBET and for service charge by the MO , but only a sum of N 52 . 8 bn ( approximately 28 per cent ) of the total invoice was settled , indicating a significant deficit of N 137. 3 bn .
“ Whereas the collection efficiency ranges from 40 per cent ( Kaduna Disco) to 84 per cent ( Ikeja Disco) , remittance performance ranges from 10 per cent ( Jos Disco) to 43 per cent ( Ikeja Disco) . ”

https://punchng.com/discos-collection-efficiency-drops-despite-tariff-hike/

FTC aye

This where the real issue is. Both discos and some customers are at fault here.

Ghana has 5000 MW of electricity but only needed 2700 MW of electricity so Ghana has excess of electricity and Nigeria with all its resources has no electricity! Shame of a country.

That's naija for you

FTC for d first time.... Hulala!!!

Implies people are not paying

We are yet to be fairly treated in terms of power supply. Until then, let them collect whatever the consumers pay

Provide everyone meters and efficiency would improve

Okay

Thunder fire Dem dia. Since Dem no wan give everybody prepaid meter and prefer to do estimated billing, Na so many people go dey dodge payment.

Good










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What a country!!!

We generate electricity but Nigerians do not enjoy it. The Government rather sells it to other neighboring countries.

Have you ever wondered that even if FG says our Megawatts has dropped, even to 0MW, those countries we sell power to always have it


The excuse is if those countries build their dams bla black bla. Let them build, we can add wind power, or other forms of electricity generation to our power grid.

Even with over estimated billings, until we all have prepaid meters

The Discos are the biggest problem in the electricity value chain arrangements as we have it today.

When it comes to such national issue, I am surprised to see less individuals commenting but if it were political arguments in which politicians are supported despite their failures, you will see the youths contributing.
Comment now

iCauseTrouble:

They should sha come and install my prepaid meter that I have paid for!

https://astrongnigerianwoman.com/2019/09/05/judith-the-fighter/

Naijaguy123:
Ghana has 5000 MW of electricity but only needed 2700 MW of electricity so Ghana has excess of electricity and Nigeria with all its resources has no electricity! Shame of a country.

You also need to consider the size of Ghana and Nigeria, land mass and population

Nothing like having a powerbank in this time of poor electricity by the power distribution companies.

I am here to help you get a reliable powerbank.

Read my signature and you be amazed.

How do you expect to see true reflection of what you expect when their performance in distributing power to end user is very poor? Until all the players in power sector fix the the challenges Nigerians face in dat sector then trust and compliance will follow. Nobody loves to repeat his foolishness twice, Nigerians are tired of paying for an unprovided service from power sector

My power bank isssa goal.. No worries

They keep on increasing the tarrif rate while doing and careless aboout improving the quality of their service to the consumers. But I know they must av had a series of scrutinizatn by the governmental body that saddled with the responsibility of regulating such increment and got their approval b4 implementing such hike tarrif. There4 the government should be blamed for that not DISCO itsef.

Matrixoba:
When it comes to such national issue, I am surprised to see less individuals commenting but if it were political arguments in which politicians are supported despite their failures, you will see the youths contributing.
Comment now

So have you commented on the issue? Brother wey mumu

Pls i need a job...a graduate (Bsc) in sociology...08052633322. Thanks

The challenges to Stable Power in this Country are DISCOs, and TCN excessive interference.

It clear the privatization of the power sector is a failed project. I just hope Buhari can muzzle the will to take over the sector, return it to government just as when it was NEPA.

Get FREE access to the best compilation of school lesson notes/plans, curriculum and other resource. Check my signature for details.

mercyvivv:
It clear the privatization of the power sector is a failed project. I just hope Buhari can muzzle the will to take over the sector, return it to government just as when it was NEPA.

Get FREE access to the best compilation of school lesson notes/plans, curriculum and other resource. Check my signature for details.

https://www.google.com/amp/s/bizwatchnigeria.ng/discos-reject-fgs-plan-to-buy-back-power-companies-for-n736-billion/amp/ nigeria cannot afford to buy them back

ogododo:
The collection efficiency of power distribution companies witnessed a drop in the first quarter of the year despite an increase in the total billing to electricity consumers by the power firms .
In the first quarter , the electricity bill to customers by the 11 power distributors rose to N 182. 8 bn , but the Discos only recorded an aggregate collection of N 116. 9 bn , representing 64 . 1 per cent collection efficiency .
This indicated a drop when compared to their performance in the fourth quarter of 2018 , as it was gathered that in Q4 of 2018 , the power firms billed customers a total of N 172. 5 bn and collected the sum of N 117. 5 bn , representing 68 . 1 per cent collection efficiency .
An analysis of their performances in the fourth quarter of 2018 and the first quarter of this year , based on data obtained from the Nigerian Electricity Regulatory Commission on Sunday in Abuja , also showed that the remittances of the Discos to the power market dropped in Q1 2019 .
In its 2019 first quarter report , NERC stated that the financial viability of the Nigeria Electricity Supply Industry was still the most significant challenge threatening the sustainability of the power sector .
It noted that as reported in the preceding quarterly reports , the liquidity challenge was partly due to the non - implementation of cost - reflective tariffs , high technical and commercial losses exacerbated by energy theft , and consumers ’ apathy to payments under the widely prevailing practice of estimated billing .
The regulator said , “ The total billing to electricity consumers by the 11 Discos rose to N 182. 8 bn in the first quarter of 2019 but only an aggregate collection of N 116. 9 bn , representing 64 . 1 per cent collection efficiency was achieved , a 4 . 1 percentage points decrease from the last quarter of 2018 .
“ The level of collection efficiency during the quarter under review indicates that a sum of N 3 . 6 out of every N 10 worth of energy sold during the first quarter of 2019 remains uncollected as and when due . ”
The commission explained that the severity of the liquidity challenge in NESI was further reflected in the settlement rate of energy invoices issued by the Nigerian Bulk Electricity Trading Company and the Market Operator to Discos , as well as the payment by special and international customers.
It said , “ During the first quarter of 2019 , the 11 Discos were issued a total invoice of N 190. 1 bn for energy received from NBET and for service charge by the MO , but only a sum of N 52 . 8 bn ( approximately 28 per cent ) of the total invoice was settled , indicating a significant deficit of N 137. 3 bn .
“ Whereas the collection efficiency ranges from 40 per cent ( Kaduna Disco) to 84 per cent ( Ikeja Disco) , remittance performance ranges from 10 per cent ( Jos Disco) to 43 per cent ( Ikeja Disco) . ”

https://punchng.com/discos-collection-efficiency-drops-despite-tariff-hike/

With this analysis, power cannot improve in this country. The rot in the system is just too much.

Energy theft is the no 1 problem while the continued existence of post paid billing albeit estimated billing remains the encouraging factor of energy theft.

Seeing the collection efficiency of Kaduna at 40%, I am not surprised. Kaduna is the disco with the lowest prepaid meter enforcement. Prepaid meter eliminates a lot of issues. Staff corruption were bill ends up unremitted, staff aid energy theft by protecting their favourite consumers, over estimating bills leading to consumer apathy etc.

Last year the transformer in my area got burnt and we spent over 4months without electricity before the LG replaced it with a new one. We still contributed over 500k for that job but a year later we are now 3 months without electricity again. Our transformer that was still under warranty got burnt again and has not been resolved. Consumers buy transformer, buy poles, buy meter and pay the disco staff for every single installation. Why would they progress?