The Nigerian Electricity Regulatory Commission (NERC) has stated that revenue generated by the 11 electricity distribution companies (DisCos) increased by 48 per cent in the second quarter of 2024.
Daily Trust reports that the increase was due to the hike in electricity tariff for Band A customers which NERC stated was necessitated due to the rising cost of electricity generation that would have pushed the federal government’s subsidy payment to over N2trn by the end of the year.
The regulator in its second quarter report stated that the DisCos revenue moved from N291.62bn in the first quarter of 2024 to N431.16bn in the second quarter.
The report added that the N431.16bn revenue collected represented 79.31 per cent of the N543.64bn that was billed to customers. It stated that the revenue collection performance of all DisCos indicated that Ikeja and Eko disCos recorded the highest collection efficiencies of 94.67 per cent and 88.03 per cent respectively.
Conversely, Yola DisCo recorded the lowest collection efficiency of 55.67 per cent. The report added that the federal government paid the sum of N380.06bnas subsidy due to the absence of cost-reflective tariffs across all DisCos.
