…as customers protest hike in cost of prepaid meters
The eleven electricity distribution companies (Discos) in Nigeria have started to manifest the reforms implemented in the last few years as their half-year 2023 revenue rose to N510.41 billion, representing an increase of 29.8 percent over N393.15 billion generated as revenue as of June 2022.
Some of the reforms include partnering Nigeria Security and Civil Defense Corps (NSCDC) to curb vandalism, introduction of Singleview web application with consolidated account management features while recently, Ikeja Disco signed an MoU with original equipment manufacturers towards supplying customized electricity cables for its network.
This is as the 11 Discos increased electricity supply by 5.2 percent to 11,761.70GWh within the first six months of this year from 11,182.49GWh as of June last year.
Further analysis of the electricity supply and revenue data of the 11 Discos
as provided by the National Bureau of Statistics (NBS) revealed that the increase in the Discos’ revenue was associated with a 10.4 percent rise in metered customers that rose from 4.96 million in June 2022 to 5.47 million customers as of June 2023.
“Similarly, metered customers stood at 5.47 million in Q2’ 2023, indicating a growth of 3.10 percent from 5.31 million recorded in the preceding quarter. On a year-on-year basis, this grew by 10.40 percent from the figure reported in Q2’ 2022, which was 4.96 million,” NBS stated.
Ikeja Disco maintained its flagship position in terms of revenue generation with a half-year income of N102.06 billion split into N49.76 billion in Q1’2023 and N52.30 billion in Q2’2023. This performance amounted to an improvement of 27.9 percent over the N79.80 billion the firm generated in the first six months of 2022, divided into N41.65 billion in Q1’2022 and N38.15 billion in Q2’2022.
Ikeja Disco supplied 2,016.60GWh from January to June 2023 compared to 1,822.93GWh supplied in the corresponding period of 2022.
Eko Disco made N84.96 billion revenue at half-year 2023 compared to N58.84 billion income as of June 2022. On a quarterly basis, it generated N41.73 billion and N43.23 billion in Q1 and Q2’2023 as against N31.14 billion and N27.72 billion in Q1 and Q2’2022, respectively.
Within the first six months of 2023, Eko Disco supplied 1,656GWh as against 1,381.39GWh during the same period in 2022.
Abuja Disco raked in N81.2 billion revenue at half-year 2023, higher by 37.9 percent than the N58.89 billion it realised from January to June 2022. The federal capital distribution company supplied 1,576GWh from January to June 2023 compared to 1,265GWh in a similar period in 2022.
Benin Disco generated N40.80 billion as revenue at half-year 2023 compared to N32.49 billion from January to June 2022, representing an increase of 25.6 percent on a year-on-year basis. Metered customers within Benin Disco’s areas of coverage rose by 17.1 percent to 3.66 million as of June 2023 while it had 3.13 million metered customers as of June 2022.
However, Benin Disco is among the few Discos whose electricity supply to the regions under its coverage fell at half-year 2023 when compared to the level of supply as of June 2022.
The NBS data showed that Benin Disco supplied 1,118.15GWh from January to June 2023, lower than 1,149.16GWh supplied during the same period in 2022.
Enugu Disco generated N40.02 billion; Port Harcourt Disco, N36.55 billion; Kano Disco, N28.09 billion; Jos Disco, N19.05 billion; Kaduna, N15.71 billion, and Yola Disco, N10.01 billion.
Meanwhile, electricity consumers in Nigeria have continued to protest the recent hike in the prices of prepaid meters as announced by the Nigerian Electricity Regulatory Commission (NERC).
According to a NERC circular released last week, a single-phase meter will now cost N81,975.16 instead of the previous cost of N58,661.69. A three-phase meter now costs N143,836.10, up from N109,684.36 previously, as the new pricing regime became effective from September 6, 2023.
Some customers of Benin Disco expressed their disappointment over the latest action by the NERC.
“The recent announcement by the electricity regulatory agency is disappointing. The body should have been considerate because prices of items we buy daily have gone up while salary remains unchanged. Where do they expect Nigerians to get money to pay for all these increases?” Lucky Osa, one of those interviewed by the Nigerian Observer, said.
Justifying the latest hikes in costs of prepaid meters, the NERC attributed the new price regime to a necessity that would ensure fair and reasonable pricing to meter asset providers and the end-user customers, adding that meter providers would be able to recover the costs associated with meter procurement, maintenance as well as ensure a fair return on investment to them.