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  • NERC: DisCos failed to collect N60b bills in December

    NERC: DisCos failed to collect N60b bills in December

    The Nigerian Electricity Regulatory Commission (NERC) yesterday said the 12 electricity distribution companies (DisCos) failed to collect approximately N60 billion in power bills in December 2024.

    Thus was contained in the factsheet the commission issued for the month under review.

    This significant revenue shortfall raises concerns about the financial health of the sector and its ability to provide reliable electricity to consumers.

    The document revealed that  while DisCos billed customers a total of N238.21 billion for electricity consumed in December, they only managed to collect N177.96 billion.

    This translates to a collection efficiency of just 74.71 per cent, leaving a substantial gap of N60.25 billion uncollected.

    The data further highlights the varying performance of individual DisCos. Notably, several DisCos recorded collection efficiencies below the national average, indicating significant challenges in revenue collection.

    “This level of revenue loss is unsustainable,” stated Aisha Mohammed, an energy analyst at the Lagos-based Centre for Development Studies.

    Read Also: NERC to sanction customrs bypassing electricity meters

    “The DisCos need to significantly improve their collection efficiency to ensure the financial viability of the power sector.”

    The inability to collect billed revenue impacts the entire electricity value chain. It limits the DisCos’ ability to invest in infrastructure upgrades, maintain their networks, and pay for the electricity they purchase from generation companies (GenCos). This ultimately affects the quality and reliability of electricity supply to consumers.

    According to the report, DisCos received a total of 2,705.86 GWh of energy in December, billing 2,257.83 GWh to customers, resulting in an overall billing efficiency of 83.44 per cent. This represents a slight increase of 0.11 per cent compared to November 2024, indicating a positive trend in DisCos’ ability to accurately meter and bill customers.

    However, the revenue collection picture is less encouraging. Out of the total billings of ₦238.21 billion, DisCos only managed to collect ₦177.96 billion, resulting in a collection efficiency of 74.71 percent. While this is an improvement of 5.88 per cent from the previous month, it still leaves a significant gap between billed and collected revenue.

    The average allowed tariff for December was ₦116.18 per kWh, while the actual average collection was ₦82.50 per kWh, representing a recovery efficiency of 71.01 per cent. This means that DisCos are only recovering approximately 71 percent of the revenue they are allowed to collect based on approved tariffs.

    A closer look at the data reveals significant variations in performance among individual DisCos. Eko DisCo stands out with the highest billing efficiency of 89.03 per cent and collection efficiency of 91.50 per cent. Ikeja DisCo also demonstrates strong performance with a billing efficiency of 83.41 percent and a recovery efficiency of 80.71 percent.

    Conversely, some DisCos are struggling with revenue recovery. Kaduna DisCo, for example, has a recovery efficiency of only 31.87 per cent, while Aba DisCo’s recovery efficiency is 45.91 percent. These low recovery rates suggest challenges in customer payment compliance and potential issues with metering and billing accuracy.

    The NERC report also highlights the relative change in performance compared to November 2024. Notably, Yola DisCo recorded the highest relative change in billing efficiency, with a 10.74 percent increase. However, the report also indicates that some DisCos experienced a decline in performance compared to the previous month.

  • NERC to sanction customrs bypassing electricity meters

    NERC to sanction customrs bypassing electricity meters

    The Nigerian Electricity Regulatory Commission (NERC) has issued an amended Order detailing new threshold of penalties for customers and Distribution Companies (DIsCos) on “Unauthorised Access, Meter Tampering, and By-Pass.”

    In a statement, the Amended Order, which replaces Order No: NERC/REG/41/2017, became effective since January 22, 2025.

    This amendment, the regulator said, “aligns with the Electricity Act 2023 and the Customer Protection Regulations (CPR) 2023, which allow Distribution Companies (DisCos) to disconnect unauthorised connections without notice and prescribe reconnection conditions.”

    For the objectives, the electricity industry regulator maintained that the order aims to achieve two things.

    The first, according to NERC is to “reduce unauthorised access to electricity, meter tampering, and by-pass; and to establish transparent reconnection guidelines to ensure compliance.”

    It proffered three key provisions on reconnection Conditions & Charges; Administrative Charges; and Compensation for Delayed Reconnection.”

    A detailed summary of other items in the New Order and implications on Unauthorised Access, Meter Tampering, and By-Pass For customers, and 11 DisCos include: the Amended Order on Unauthorised Access, Meter Tampering, and By-pass replaces Order No: NERC/REG/41/2017 and has taken effect from 22 January 2025 amendment aligns with the Electricity Act 2023 and the Customer Protection Regulations (CPR) 2023, which allow Distribution Companies (DisCos) to disconnect unauthorised connections without notice and prescribe reconnection conditions.

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    The order also said customers who by-pass meters or gain unauthorised access must pay administrative charges (including meter replacement costs) and reconnection costs.

    Others include: Administrative Charges: Any customer that gains unauthorised access to electricity through tampering or meter by-pass will be reconnected upon payment of the administrative charges including meter replacement cost which shall not exceed the sum outlined below:

    Non-MD Single Phase: (Residential) with first Offense will pay N100,000 while he/she will pay N150,000 for subsequent Offense. Non-MD Three Phase (Residential) customers will pay N200k for the first Offense and pay N300k for subsequent Offense. Maximum Demand (MD) customers will pay a fine of 450 per cent of last recorded consumption for the first Offense and 600 per cent of last recorded consumption for a subsequent Offense.

    If disconnected, the Non-MD customer will pay N10,000 while the MD customers will part ways with N50,000 to be reconnected. Compensation for delayed reconnection: if DisCos fail to reconnect a customer within 48 hours after payment, they must compensate with 100 per cent of daily energy consumption in energy credit. Customers guilty of unauthorised access must pay for the loss of revenue through back-billing at the prevailing tariff.

  • IE warns customers on outdated meters

    IE warns customers on outdated meters

    Ikeja Electric (IE) Plc has warned that it will no longer support the Unistar card meter and other outdated card meters under the Federal Government’s Meter Acquisition Fund (MAF) scheme.

    The utility firm, in a public notice to its customers, warned that its technology might no longer support the Unistar card meter and any other outdated or obsolete card meters.

    However, IE stated that “all eligible Band A customers” affected will receive a complimentary meter replacement under the ongoing Federal Government/NERC Meter Acquisition Fund (MAF) scheme.

    This, it said, is to ensure continued access to electricity without estimated billing.

    “We encourage you to take advantage of this opportunity, as meters not installed within 20 days may no longer be available,” the public notice read.

    To prevent disruptions in service, Ikeja Electric urged customers to complete their SmartKYC registration within 48 hours, stating, “To avoid your connection being moved to direct supply due to incompatibility, please complete your SmartKYC registration within forty-eight hours.”

    But reacting to this, angry customers of the IE not on Band A have kicked against the development, describing the position of the utility as “discriminatory.”

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    An IE customer in Ikorodu, Afolabi Oke, regretted that such a “discriminatory” position could be taken by IE. He described the statement as insensitivity on the part of the service provider.

    “This statement by IE is purely discriminatory. It has buttressed the fears we had that the classification of customers into Bands was aimed at oppressing some of us and lack of competence to deliver electricity to all customers. Besides, IE is telling us that this is all about money and not service provision,” Afolabi said.

    According to him, IE has the responsibility of making meters available to every customer irrespective of their band category.

    An official of the Nigerian Electricity Regulatory Commission (NERC) , who asked not to be named because he is not authorized to speak on the matter, however said, there are guiding laws on placing consumers on estimated billing, and as such it must be obeyed.

    “We are watching with keen attention how this plays out, but we know IE knows the rules,” he offered.

    Recall that the issue of meter replacement and threats of placing customers on estimated billing had generated an argument between the Distribution Companies (DisCos) and the Federal Competition and Consumer Protection Commission (FCCPC), with the latter issuing stern warnings to the Ikeja Electricity Distribution Company, and the Eko Electricity Distribution Company, EKEDC against flouting its directives on obsolete meters.

  • DisCos failed to collect N42.07b in November 2024 – NERC

    DisCos failed to collect N42.07b in November 2024 – NERC

    The Nigerian Electricity Regulatory Commission (NERC) said 12 electricity Distribution Companies (DisCos) failed to collect N42.07billion  from their customers in November 2024.

    According to the commission, the energy distributors which recorded N216.72billion actual billing, only collected N175.65billion from the customers.

    The DisCos, said NERC, recorded 80.59 per cent collection efficiency in the period under review.

    This was made known in the commission’s document titled: “Commercial Performance of Distribution Companies (DisCos) FACT SHEET November 2024.”

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    On DisCos Billing Performance: NERC said the firms received 2,439.52GWh total energy and recorded 2,038.30GWh or 2,038,300MW energy billed.

    NERC said in the period under review, the DisCos recorded 83.55 per cent billing efficiency.

    While Yola Electricity Distribution Company (YEDCO) recorded 93.33per cent billing efficiency to top the list, Kaduna Electricity Distribution Company was the lowest with 66.32 per cent billing efficiency.

    Abuja Electricity Distribution Company (AEDC) led the chart of the highest collected bills with N28.33billion out of the N36.95 total billing.

    On the other hand, Aba was the least with a collection of N1.89billion out of the N2.28billion bills.

    The document said while NERC allowed N116.18 per kWh tariff, the actual average collection was N89.81KWh.

    This is an indication of 26.37KWh subsidy in the tariff in November 2024.

    This further indicates N53,749,971 subsidy payment in the month under review.

  • Aba residents reject electricity tariff hike, demand fair billing

    Aba residents reject electricity tariff hike, demand fair billing

    Residents of Aba, the commercial hub of Abia State, have strongly opposed the recent electricity tariff increase approved by the Nigerian Electricity Regulatory Commission (NERC) for the Aba Power Distribution Company. 

    The opposition includes a broad coalition of stakeholders such as business owners, the Joint Action Group (JAG), the Aba Landlord Protection and Development Association (ALPADA), the Aba Electricity Consumer Forum, civil society groups, and industrialists.

    They have unanimously rejected the tariff hike, calling for a review of the decision. 

    During a protest against the increase, electricity consumers carried placards with inscriptions such as “No to Unfair Tariff Hikes” and “Prepaid Meters Now,” expressing their frustration over what they described as exploitative billing practices by Aba Power. 

    The protesters accused the company of failing to provide adequate electricity supply despite imposing higher charges.

    A representative of ALPADA, speaking on behalf of the group, criticized the tariff hike, pointing out that power supply remains erratic, with megawatt distribution reportedly reduced while consumers continue to face inflated charges.

    “How can you charge the same amount when the electricity supply has dropped significantly? This is exploitation, and we will not accept it,” the leader stated, drawing applause from the crowd.

    Speakers at the protest also raised concerns about the delayed installation of prepaid meters.

    They accused Aba Power of violating NERC regulations, which mandate the provision of prepaid meters within ten working days after payment.

    Many residents shared accounts of paying for meters months ago without receiving them, resulting in estimated billing practices they described as oppressive and unsustainable.

    “Some of us have paid for prepaid meters since last year, yet we are still being billed unfairly. How long will we continue to endure this?” asked a protester.

    The speakers argued that these practices undermined trust and transparency in the electricity distribution system.

    The protesters called on NERC and other relevant authorities to urgently intervene by reversing the tariff hike and compelling Aba Power to address the lapses in service delivery.

    They emphasized that without prompt action, the new rates would impose severe economic hardship on households and businesses already struggling to cope with inflation and high living costs.

    Read Also: Aba Power seeks 163% electricity tariff hike

    In addition to rejecting the tariff increase, the coalition demanded that Aba Power overhaul its billing structure to ensure fairness and accountability.

    They also urged the government to hold distribution companies accountable for adhering to the provisions of the Electric Power Sector Reform Act.

    The protest underscores growing frustrations among electricity consumers in Aba, who say they are often forced to endure poor service while being subjected to high charges.

    The organizers have vowed to sustain the agitation until their demands are met, pledging to remain peaceful while pursuing legal and regulatory avenues to protect consumer rights.

  • NERC completes transfer of regulatory oversight to four states

    NERC completes transfer of regulatory oversight to four states

    The Nigerian Electricity Regulatory Commission (NERC) has completed the transfer of regulatory oversight to four States

    The states are Enugu, Ekiti, Ondo, and Imo that are now fully in charge of the regulation of their electricity markets.

    NERC made this known in its X handle yesterday, noting it has begun the  transfer of regulatory oversight to 10 States as at 10th January, 2025.

    NERC said: “As of January 10, 2025, #NERC has commenced the transfer of regulatory oversight to 10 states. Once the transfers are complete, the states will be in charge of regulating their electricity markets.

    “The 10 states are: Enugu; Ekiti; Ondo; Imo; Oyo; Edo; Kogi; Lagos; Ogun; and Niger.

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    “The transfers have been completed for 4 states, namely Enugu, Ekiti, Ondo, and Imo, while 6 states are still in progress.”

    The transfer, which is consequent upon the enactment of the 2023 Electricity Act (2023 EA) has altered the mode of operation that existed in the Nigerian Electricity Supply Industry (NESI) since 2013.

    There have been 11 electricity Distribution Companies (DisCos) namely: Abuja DisCo, Benin DisCo, Enugu DisCo, Eko DisCo, Ibadan DisCo, Ikeja DisCo, Kaduna DisCos, Kano DisCo, Jos DisCo, Port Harcourt DisCo and Yola DisCo, aside the 12th one, Aba Power Electric (APLE).

    With the completion of transfer of oversight in four States, the preexisting market structures in Enugu DisCo, Benin DisCo, and Ibadan DisCo have been altered.

    With time in 2025, the other six states will incorporate their sub Companies to further change the electricity market structure.

  • NERC completes transfer of regulatory oversight to four states

    NERC completes transfer of regulatory oversight to four states

    The Nigerian Electricity Regulatory Commission (NERC) has completed the transfer of regulatory oversight to four states. 

    The states are Enugu, Ekiti, Ondo, and Imo, which are now fully responsible for the regulation of their electricity markets.

    NERC made this known on its X handle on Monday, noting it has begun the transfer of regulatory oversight to 10 states as of 10th January 2025.

    NERC stated: “As of January 10, 2025, #NERC has commenced the transfer of regulatory oversight to 10 states. Once the transfers are complete, the states will be responsible for regulating their electricity markets.

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    “The 10 states are: Enugu; Ekiti; Ondo; Imo; Oyo; Edo; Kogi; Lagos; Ogun; and Niger.

    “The transfers have been completed for four states, namely Enugu, Ekiti, Ondo, and Imo, while six states are still in progress.” 

    The transfer, which is consequent upon the enactment of the 2023 Electricity Act (2023 EA), has altered the mode of operation that existed in the Nigerian Electricity Supply Industry (NESI) since 2013.

    There have been 11 electricity Distribution Companies (DisCos), namely: Abuja DisCo, Benin DisCo, Enugu DisCo, Eko DisCo, Ibadan DisCo, Ikeja DisCo, Kaduna DisCo, Kano DisCo, Jos DisCo, Port Harcourt DisCo, and Yola DisCo, aside from the 12th one, Aba Power Electric (APLE). 

    With the completion of the transfer of oversight in four states, the pre-existing market structures in Enugu DisCo, Benin DisCo, and Ibadan DisCo have been adjusted.

    In time, in 2025, the other six states will incorporate their sub-companies to further change the electricity market structure.

  • NERC transfers regulatory oversight to Ogun

    NERC transfers regulatory oversight to Ogun

    Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight to Ogun State Electricity Regulatory Commission (OGERC).

    This is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and Electricity Act 2023 (Amended).

    NERC made this known in a public notice on its website yesterday.

    The notice said: “Nigerian Electricity Regulatory Commission (‘NERC’ or the ‘Commission’) has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the Commission to Ogun State Electricity Regulatory Commission (OGERC).”

    NERC recalls that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

    The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the state regulator.

    The public notice said based on this, Ogun State Government complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ogun State.

    Read Also: NDPHC, NERC move to recoup N100b investment in TCN

    According to NERC, the transfer order by NERC has the following provisions: Direct Eko Electricity Distribution Company (EKEDC), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDC, IE and IBEDC.

    NERC said EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from December 24, 2024.

    The subcompanies said NERC shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.

    NERC insisted that all transfers envisaged by this order shall be completed by June 23, 2025.

  • NERC transfers regulatory oversight to Ogun

    NERC transfers regulatory oversight to Ogun

    The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory oversight to the Ogun State Electricity Regulatory Commission (OGERC).

    This is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

    NERC made this known in a public notice on its website yesterday.

    The notice said, ” Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”) has issued an order to transfer regulatory oversight of the electricity market in Ogun State from the Commission to the Ogun State Electricity Regulatory Commission (OGERC).”

    NERC recall that with the EA 2023, the Commission retains the role as a central regulator with regulatory oversight on the inter-state/international generation, transmission, supply, trading and system operations.

    The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the State to the State Regulator.

    The public notice said based on this, the Government of Ogun State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Ogun State.

    Read Also: NDPHC, NERC move to recoup N100b investment in TCN

    According to NERC, the transfer Order by NERC has the following provisions:

    – Direct Eko Electricity Distribution Company (EKEDP), Ikeja Electric PLC (IE) and Ibadan Electricity Distribution Company (IBEDC) to incorporate subsidiaries: EKEDP SubCo, IE SubCo and IBEDC SubCo respectively to assume responsibilities for intrastate supply and distribution of electricity in Ogun State from EKEDP, IE and IBEDC.

    NERC said EKEDP, IE and IBEDC shall complete the incorporation of EKEDP SubCo, IE SubCo and IBEDC SubCo within 60 days from 24th December 2024. 

    The subcompanies, said NERC, shall apply for and obtain licences for the intrastate supply and distribution of electricity from OGERC, among other directives.

    NERC insisted that all transfers envisaged by this order shall be completed by 23rd June 2025. 

  • NDPHC, NERC move to recoup N100b investment in TCN

    NDPHC, NERC move to recoup N100b investment in TCN

    The Niger Delta Power Holding Company (NDPHC) Limited and Nigerian Electricity Regulatory Commission (NERC) have advanced discussions for recouping investments in its assets worth N100 billion handed to the Transmission Company of Nigeria (TCN).

    This was contained in a document titled “100 Days in Office Milestone Report “for which the NDPHC Managing Director, Engr. Jennifer Adighije issued to The Nation yesterday.

    She assumed office alongside other members of the management on August 16, 2024.

    The report said the management under her leadership, has “Advanced discussions with TCN and NERC on recouping investments on assets handed over to TCN worth N100 billion.”

    Other notable achievements, according to the report, are the recovery of debt from cross-border bilateral client CEET, Togo, in the sum of $4 million for invoice payment for invoice payment for energy sales in November 2023.

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    The document said the NDPHC has extracted commitment from insurance underwriters AG Zurich to defray about $15 million insurance claims of GT2 fire incident at Alaoji plant.

    The company has also received that it is establishing a price benchmarking desk for enhancing procurement practices via market surveys to mitigate procurement gaps and lead time for cost savings.

    The company, according to the report, has succeeded in the conversion of the third party contract critical manpower to NDPHC staff across the power plants.

    It has also completed the Afam-Ikot Ekpene Double Circuit Transmission Line and Adam 330KV Line Bay Extension (NIPP Lot 4T).

    According to the document, the NDPHC has completed 1 ×15 MVA, 33/11kV injection substation with 0.1km of 33kV line, 5K of LT Line and supply and installation of 3 numbers of 500 KVA 11/0.415 KV Distribution Transformers in College of Agriculture, Maiduguri, Borno State.

    On the challenges of the company, the document said the Nigerian Electricity Liability Company (NELMC) is yet to settle N24.4 legacy debts.

    NDPHC said its restrictions by the System Operator of the TCN is resulting in stranded power.

    Projecting into 2025, the report said the NDPHC has vowed to restore all off -line generating units across the power plants.

    By the third quarter next year, according to the report, the company would develop a sustainable plan for assets optimization.

    In the first quarter of 2025, said the document, the NDPHC would engage Market Operator on tariff provisions for ancillary services.

    By next year, it would explore investments in renewable energy generation to diversify power generation mix.