DisCos recorded N777bn revenue collection in 2022 Q1 ― ANED

The electricity Distribution Companies (DisCos) in 2022 first quarter, recorded N777billion revenue collection, the Association of Nigerian Electricity Distributors (ANED) has disclosed.

This was even as it revealed that the DisCos have installed about 129,352 distribution transformers since the power sector privatisation of 2013.

Executive Director, Research and Advocacy, (ANED), Sunday Oduntan, made the disclosure in a statement, on Wednesday.

According to ANED, the investors and operators remain totally committed to improving service delivery to customers despite DisCos’ lapses.

It said there has been improvement in, “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 per cent increase; Increased metering from 2.3 million in 2013 to 4.1 million as of 2020, a 78 per cent increase.”

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

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On the takeover of five DisCos by banks, it said this was not justifiable as the Director General of the Bureau of Public Enterprises (BPE) is also a board member of the companies.

According to ANED, the recent restructuring of the DisCos was being worsened by a resort to violations of the rule of law – expropriation of DisCos outside the framework of the agreements reached under the privatisation of the assets.

“How then is the “restructuring” or expropriation of the five DisCos justified, given the government’s contribution to the challenges that have be-devilled DisCo operations?”, it queried.

ANED also cited the BPE’s ‘Performance Assessment of nine DisCos Comprehensive Report of December 2021’ which states that, “Government: Several commitments and investments have not been executed timely, leading to continuous structural issues impacting DisCos.”

It said the BPE report also faulted the lack of minor reviews from 2015-2019 by the Nigerian Electricity Regulatory Commission (NERC) despite dynamic variables, resulting in N2.4 trillion of tariff shortfall accumulating between 2015-2020, as well as “unfavourable regulatory guidelines negatively impacting DisCos source of revenue.”

However, ANED assured that operators of the distribution segment of the power sector value chain were ready to do more in a business environment that, “has respect for the sanctity of contract and not ready expropriation of largely private assets is the norm.”

The association highlighted the core issues of the power sector to include; lack of a cost-reflective and sustainable tariff, inadequate gas supply, inconsistent regulatory and policy determinations, transmission grid constraint, non-payment of MDA electricity debt, electricity theft, and the lack of respect for the sanctity of contract, which must be addressed.

“Expropriation, “restructuring” or disregard for the rule of law is not and cannot be the solution,” it noted.

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DisCos recorded N777bn revenue collection in 2022 Q1 ― ANED