Power distribution companies in Nigeria have used the recent tariff hike to improve their earnings in March 2024. The increased earnings which rose from ₦95 billion in January 2024, to ₦100 billion in March 2024, comes amid complaints of drop in power generation. The declining power generation during the period was traced to the gas shortages reported by electricity generating companies (GENCOs) as gas companies stopped supplying gas to them due to unpaid debts. In Q1, 2024, the DISCOs recorded a combined income of ₦292 billion and the increase in revenue earned during the period has been linked to the recent tariff hike by the DISCOs.
The Eight DISCOs recorded an increase in their revenue in March 2024 and they include: Ikeja DISCO recorded the highest income in March which amounted to ₦20 billion; Eko DISCO recorded an income of ₦16.7 billion; Abuja DISCO also recorded a revenue of ₦16.7 billion in March.; Ibadan DISCO generated ₦10 billion during the period under review; Benin DISCO raked in ₦7.5 billion in March 2024.; Enugu DISCO raked in ₦6.9 billion during the period; The newly inaugurated Geometric Power, otherwise known as Aba Power, generated ₦1.1 billion and Yola DISCO earned ₦1.5 billion during the period.
Data released by the Nigerian Electricity Regulatory Commission (NERC) shows that in January 2024, the power supply to the DISCOs was recorded as 2,577 gigawatt-hours while 2,072GWh of the energy received was billed. The billing efficiency was recorded at 80% in January while the sum ₦130.9 billion was pegged as total billing. Total revenue collected was recorded at ₦95 billion, representing 72% billing efficiency. In February 2024, DISCOs received 2,149GWh as total energy, a decline from the volume received in January. The volume of energy billed by the DISCOs was recorded as 1,759GWh and ₦97 billion revenue was collected from ₦113 billion billing charges sent out. In March, the volume of total energy received stood at 2,468GWh. 1,975GWh out of the total energy was billed at ₦126.5 billion and ₦100 billion was generated as revenue.
