Electricity Distribution Companies (DisCos) have failed to meet the aggregate technical, commercial and collection (ATC&C) loss reduction targets, with Kaduna DisCo recording 73 per cent loss.
The failure comes at a time when the sector has increased the electricity tariffs for Band A customers.
The high ATC&C losses indicate substantial technical inefficiencies, energy theft and billing issues, which have collectively hindered the DisCos’ ability to deliver reliable electricity to consumers.
According to Nigerian Electricity Regulatory Commission (NERC) fourth quarter (Q4) 2023 statutory reports highlight, none of the DisCos achieved the target with Abuja DisCo recording 43 per cent from a target of 19 per cent.
Benin DisCo recorded 44 per cent from a target of 17 per cent target; Eko DisCo recorded 24 per cent from a target 14 per cent while Enugu DisCo recorded 43 percent from a target of 11 per cent.
Ibadan DisCo recorded 45 per cent loss from an actual target of 15 per cent; Ikeja Electric recorded 18 per cent from a target of 11 per cent just as Jos DisCo recorded 63 per cent from an actual target of 27 per cent.
Kaduna DisCo recorded 73 per cent from a set target of seven per cent; Kano DisCo recorded 58 per cent from a target of 16 per cent; Port Harcourt recorded 43 per cent loss from a 21 per cent target while Yola DisCo recorded 64 per cent from an actual target of 61 per cent.
The failure to meet the target means they are unable to meet revenue requirements, thereby compromising their long-term financial position.
These losses can be attributed to technical issues such as power theft, meter tampering, equipment failures and commercial challenges such as billing inaccuracies and revenue, leakages, collection losses arising from difficulties in retrieving payments from consumers.
NERC mentioned that any DisCo that can outperform its allowed ATC&C by recording a lower actual ATC&C than the target used to compute its cost-reflective tariff will earn more returns on its set tariffs while any DisCo that fails to meet its allowed ATC&C, having higher actual ATC&C than the target would be unable to earn the expected returns on its set tariffs and could risk long-term financial challenges.
