In Q1, DisCos Record N777bn Revenue Collection, Fault Restructuring

The electricity Distribution Companies (DisCos) says it has established a new revenue collection milestone of N777 billion in the first quarter of 2022. This was after its investors faulted the recent restructuring of five DisCos by the federal government.

The Association of Nigerian Electricity Distributors (ANED) through its Executive Director, Research and Advocacy, Barr Sunday Oduntan, in a statement on Wednesday, said despite the unfavourable business environment, the DisCos were improving and installed 129,352 distribution transformers as at 2020 after the power sector privatisation of 2013.

It says “Establishment of a new revenue collection of N777 billion; the installation of 129,352 distribution transformers as of 2020 versus 75,041, in 2013, a 72% increase; Increased metering from 2.3 million in 2013 to 4.1m as of 2020, a 78% increase.”

Also Read: DisCos Blame FG On Failed N100bn Subsidy After Privatisation

Other feats by the DisCos include a reduction of average Aggregate Technical Commercial & Collection Losses (ATC&C), estimated in excess of 56%, pre-privatisation) to 46.3%; increase in the number of registered customers from an estimate of less than 2m customers, pre-privatisation, to 10.2m; establishment of 1,035 customer centres and the creation of 32,573 jobs as against the 23,515 at the privatisation period.

The association also said the recent restructuring of the DisCos which is unjustifiable, and is being worsened by a resort to violations of the rule of law – expropriation of DisCos outside the privatisation agreement including the arrest of the MD of Benin DisCo on August 15th, 2022 and the violation of a court order in favour of BEDC.

It noted that the Director General of the Bureau of Public Enterprises (BPE) is also a board member of the companies as it cited the BPE’s 2021 Performance Assessment report of 9 DisCos, in which the government failed its commitments and investments to the DisCos.

The report also faulted the lack of minor reviews from 2015-2019 by the Nigerian Electricity Regulatory Commission (NERC) resulting in N2.4 trillion tariff shortfall and “unfavourable regulatory guidelines negatively impacting DisCos source of revenue.”

Meanwhile, the Benin Electricity Distribution Company (BEDC) Plc has dismissed an alleged opinion of the Minister of Justice and Attorney General of the Federation (AGF) that the ex parte orders of the Federal High Court for Vigeo Power Limited v. Fidelity Bank PLC & seven other on the 8th day of July, 2022, had expired after 14 days.