Discos rake in N509bn amidst serial grid collapses

Electricity consumers paid a total of N509.84bn in the fourth quarter of 2024 despite enduring five grid collapses within the same period, The PUNCH reports.

The Nigerian Electricity Regulatory Commission said in a report that there were three incidents of total collapse and two incidents of partial collapse on the national grid in 2024/Q4.

NERC said the N509.84bn generated by the electricity distribution companies in the last three months of 2024 was higher than the N466.69bn collected in the third quarter.

In comparison, it said the total revenue collected by all Discos in 2024/Q3 was N466.69bn out of the N626.02bn billed to customers, saying the 77.44 per cent collection efficiency recorded in 2024/Q4 is +2.89pp higher than the collection efficiency recorded in 2024/Q3.

The amount was generated even as the quarter recorded five of the 12 grid collapses that occurred in 2024.

According to NERC, the national power grid is a vast network of electrical transmission lines that link power stations to end-use customers across the nation and is designed to function within specific stability boundaries, including voltage (330kV ± 5.0%) and frequency (50Hz ± 0.5%).

Any deviation from these stability ranges can result in decreased power quality and, in severe cases, cause widespread power outages ranging from a partial collapse of a section of the grid to a full system-wide blackout.

It was stated that when the electricity demand is higher than the supply, the grid frequency drops. Conversely, if supply surpasses demand, the frequency increases.

“There were three incidents of total collapse and two incidents of partial collapse on the national grid in 2024/Q4.

“The partial collapses occurred on October 14 and November 5, 2024, while the total collapses occurred on October 19, November 7, and December 11, 2024, respectively,” the report said.

It was disclosed the system operator would submit a detailed report containing the root causes of the incidents leading to the system disruptions to the commission while mitigating plans to avoid a recurrence of similar incidents.

However, about two partial collapses have occurred in the first quarter of 2025, plunging consumers into darkness.

The NERC report explained that similar to the trend observed in 2024/Q3, Eko and Ikeja DisCos recorded the highest collection efficiencies in 2024/Q4 with 90 per cent and 82.3 per cent respectively.

Conversely, Jos Disco recorded the lowest collection efficiency at 49.68 per cent.

A comparison of Discos’ performance shows that eight Discos recorded improvements in collection efficiency between 2024/Q3 and 2024/Q4, with Yola (+13.93pp) and Kano (+9.88pp) recording the greatest improvements.

However, the remaining three Discos recorded declines in collection efficiency with Jos (-3.61pp) and Abuja (-3.39pp) DisCos having the most significant declines over the period.

“In 2024/Q4, billing and collection efficiencies improved by +1.51pp and +2.89pp, respectively, compared to 2024/Q3. Based on historical trends, these improvements can be attributed to the reduced energy offtake during the quarter compared to 2024/Q3,” the report noted.

It was explained that when DisCos offtake less energy, they are able to dedicate a higher share of their energy to areas with lower billing and collection inefficiencies.

NERC stressed that the most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters.

The commission recalled that it issued the Order on the operationalisation of Tranche A of the Meter Acquisition Fund in 2024/Q2, and it became effective on June 24.

The order, it was said, directed DisCos to utilise the first tranche of disbursement from the MAF scheme to procure and install meters for unmetered Band A customers within their franchise areas.

“As of December 2024, DisCos have metered more than 4,000 Band A customers through the MAF scheme. In addition to the MAF, DisCos are expected to continue to utilise any of the metering frameworks provided for in the NERC MAP and NMMP metering regulation (2021) to improve end-use customer metering in their franchise areas.

“This will reduce commercial and collection losses, thereby improving the flow of funds to upstream market participants in the Nigerian electricity supply industry,” the report added.