Discos pocket N291bn as power sector crisis persists

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A recent report by the Nigerian Electricity Regulatory Commission (NERC) has revealed that Electricity Distribution Companies (DisCos) raked in N291.62 billion ($682 million) in the first quarter of 2024. This news comes amidst a persistent nationwide power crisis, raising concerns about the fairness and effectiveness of the current electricity distribution model.

The NERC report details that this revenue collection translates to a 79.11% collection efficiency, a slight increase compared to the previous quarter. However, this financial gain for the DisCos coincides with a period of prolonged power outages across the country. Gas shortages have crippled power generation, leading to blackouts and public frustration.

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The NERC also stated that the revenue generated by the Discos was out of the N368.65bn billed to customers in the first three months of the year.

“The total revenue collected by all Discos in 2024/Q1 was ₦291.62bn out of ₦368.65bn billed to customers. This translates to a collection efficiency of 79.11 per cent which represents an increase of +5.32 percentage points when compared to 2023/Q4 (73.79 per cent),” NERC stated.

The apparent discrepancy between DisCo profits and Nigerians’ lack of access to reliable electricity has sparked public outrage and concerns about accountability. Critics argue that the DisCos are prioritizing profit maximization over service delivery, raising questions about the affordability and efficiency of the power sector.

Tags: DisCo, Power, NERC, Nigeria, Electricity, Bola Tinubu