Revenue collection by the 11 distribution companies increased by 47% to N757bn in 2021. The Association of Nigerian Electricity Distributors’ 2021 report on Commercial Key Performance Indicator. For its members said NESI’s revenue collection in 2021 set a record of N757bn, which represented an increment of N241bn. They put the revenue for 2020 at N516bn.
According to the report; the increment was due to implementing the service-reflective tariff in November 2020. However, there was a five percent growth in the energy delivered to the market and better performance on the Aggregate Technical, Commercial, and Collections (ATC&C) losses.
Recently, the spokesperson for Ikeja Electricity Distribution Company, Felix Ofulue, said the electricity market had recovered from its liquidity challenges. Thereafter, part of the Federal Government’s interventions were in clearing backlogs of tariff debts and provision of loans to bridge the metering gaps.
A leading lawyer advising the Nigerian National Petroleum Corporation on oil and gas projects and partner at Bloomfield Law Practice. Mr Ayodele Oni said the revenue collection increase could be because of various interventions by the CBN to rescue the power sector from liquidity. According to him, the increase will cause adequate revenue distribution among all arms of the sector.
A consultant on the DFID-funded Facility for Oil Sector Transformation managed by the Oxford Policy Management and an independent researcher & development practitioner. Dr.Dauda Garuba argued that service delivery by the DisCos was yet to improve despite their supposed revenue increment. A communications expert, Chido Nwakama, opined that although news of increased revenue collection by the Discos was pleasant and uplifting. They should do more of what they earned the increase and change the narrative.
-Punch.
