NERC made N5.63 billion in revenue in Q2/2023 

The Nigerian Electricity Regulatory Commission (NERC) has said that it made ₦5.63 billion as revenue and had an expenditure of ₦2.46 billion in the second quarter of 2023.

The Commission stated this in its Q2/2023 Electricity on Demand report released earlier this week.  

According to the NERC report, in 2023/Q2, the Commission generated revenue of ₦5.63 billion, showing an increase of ₦0.90 billion (19.12%) compared to the ₦4.73 billion revenue in the previous quarter (2023/Q1). During the same period, the Commission’s total expenditure increased by ₦0.66 billion (36.80%), rising from ₦1.80 billion in 2023/Q1 to ₦2.46 billion in 2023/Q2. 

The Commission maintained a positive net cash flow of ₦3.17 billion in the quarter. This marks the 16th consecutive quarter with positive cash flow, highlighting the Commission’s strong financial performance. 

The NERC report also noted that regarding energy offtake by Distribution Companies (DisCos) at their trading points, the average for 2023/Q2 was 3,251.31 MWh/h, displaying a decrease of -218.82 MWh/h (-6.31%) in comparison to the offtake in 2023/Q1, which was 3,470.13 MWh/h.  

During this period, all DisCos consumed less energy than their available Peak Control Capacity (PCC), except for Eko DisCo, which surpassed its PCC, reaching an offtake performance of 116.90%.

Quarter-on-quarter analysis demonstrated an overall improvement in the energy offtake performance of DisCos in 2023/Q2, with a 3.18 percentage point (pp) increase (96.60%) relative to the performance recorded in 2023/Q1, which stood at 93.42%.  

Notably, Eko DisCo showed significant progress, increasing its offtake performance by 23.44 pp between the two quarters. However, Jos and Kano DisCos recorded decreases of -3.60pp and -0.54pp, respectively. 

In 2023/Q2, the total energy offtake by all DisCos amounted to 7,100.87GWh, while the total energy billed was 5,789.21GWh, resulting in a billing efficiency of 81.53%.

This implies that ₦18.47 out of every ₦100 worth of energy received by DisCos in 2023/Q2 was not billed to end users.  

Comparatively, in 2023/Q1, the billing efficiency was 77.97%, indicating a 3.56 pp improvement in billing efficiency at the aggregate level between the two quarters. 

Ikeja DisCo billing efficiency – 92.17% 

The NERC report noted further that during the highlighted quarter, Ikeja DisCo achieved the highest billing efficiency of 92.17%, while Kaduna DisCo reported the lowest billing efficiency of 64.16%.

All DisCos, except Benin, demonstrated improvements in their billing efficiencies in 2023/Q2 compared to 2023/Q1.  

Meanwhile, Yola, Kaduna, and Ikeja DisCos showed the most significant improvements, with increases of 11.09 pp, 9.74 pp, and 6.66 pp, respectively.