Energy
FG reports DisCos’ failure to remit N208bn in 2022
The failure of Nigerian power distribution companies (Discos) to make complete remittances in 2022 has been revealed in the latest quarterly report from the Nigerian Electricity Regulatory Commission. It showed that a total of N208.8 billion was not remitted to the Nigeria Electricity Supply Industry throughout the year.
These Discos are responsible for distributing electricity to consumers in their respective franchise areas of operation. The 11 Discos are Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt, and Yola. Despite efforts made in 2013 to improve the efficiency and reliability of electricity supply across Nigeria, the Discos never made a complete remittance throughout 2022.
This development is undoubtedly a setback to efforts made by the Nigerian Government to improve the country’s power sector through various reforms over the years. Electric power remains a major concern in Nigeria with several factors such as transmission constraints, inadequate gas supply, and distribution challenges affecting the power sector. Reports have shown that a large percentage of the population has no access to stable power supply, making it difficult to develop critical sectors of the economy.
It remains to be seen how the Nigerian Government would address this issue and hold the Discos accountable for their actions. Nevertheless, immediate action is required to provide adequate power to the people, especially those in rural areas, where access to electricity is a matter of life and death.
The Discos are responsible for collecting electricity bills from consumers and remitting the funds to the power market through the Nigerian Bulk Electricity Trading (NBET) Plc and the Market Operator (MO). However, according to the Nigerian Electricity Regulatory Commission’s figures, the Discos failed to remit N208.8 billion in 2022, including N49.23 billion, N31.3 billion, N58.3 billion, and N69.94 billion in the fourth, third, second, and first quarters, respectively.
The NERC’s Fourth Quarter Report presented that the Discos were billed a total of N231.01 billion, comprising generation costs from the Nigerian Bulk Electricity Trading Company (N188.74bn) and transmission and administrative services from the Market Operator (N42.27bn). The Discos’ total remittance of this amount was N181.78 billion (N145.91bn for NBET and N35.87bn for MO), leaving an unpaid balance of N49.23 billion.
Given that remitting these funds is a crucial obligation of the Discos, this shortfall presents a significant challenge for the Nigerian Electricity Supply Industry’s development. Also, this shortfall is a reminder of the critical need for Nigeria’s power sector to undergo a radical overhaul of the current systems and operations. Urgent measures are required to ensure the adequate supply of electricity, particularly in rural areas.
The Nigerian Electricity Regulatory Commission has linked poor remittance by the Discos to higher technical, commercial, and collection losses than allowed. The commission stated in its report that the Discos’ failure to make timely and complete remittances has become more common due to these losses, which are eroding their bottom line.
The NERC noted that during the third quarter of 2022, the Discos breached the rules by failing to pay the allowed remittance due to the Nigerian Electricity Supply Industry. The commission disclosed that the Discos owed a total of ₦31.29bn from a combined invoice of ₦204.84bn, which was billed for generation costs from the Nigerian Bulk Electricity Trading Company (NBET), and transmission and administrative expenses from the Market Operator (MO).
In the second quarter of 2022, the combined invoices from the NBET and MO to the Discos were ₦185.01bn, divided into generation costs of N149.89bn and transmission and administrative expenditure of N35.12bn. The Discos made a total remittance of ₦156.71bn (N126.3bn for NBET and N30.41bn for MO), leaving an unpaid balance of ₦28.3bn.
These persistent remittance shortfalls bust Nigeria’s efforts to transform its power sector, which has been hampered by insufficient investments, operational inefficiencies, and inadequate regulation. Ensuring that the Discos submit their funds as needed will significantly boost the sector and attract foreign investment.
According to data from the Nigerian Electricity Regulatory Commission, the combined invoices issued to the Discos for the second quarter of 2022 amounted to N175.01bn, with generation costs from the Nigerian Bulk Electricity Trading Company accounting for N142.4bn and administrative/transmission expenses from the Market Operator accounting for the remaining N32.61bn. The Discos remitted a total of N126.69bn (N102.35bn for NBET and N24.34bn for MO) but still owe N58.32bn.
Regarding Q1, 2022 market remittance, the combined invoice issued to the Discos amounted to N205.63bn, comprising generation costs of N164.86bn and transmission/administration services of N40.77bn. The Discos remitted a total of N135.69bn (N109.96bn for NBET and N25.73bn for MO) but owe N69.94bn.
The Commission’s report shows that the Nigerian power sector struggles with a liquidity crisis exacerbated by the power distribution companies’ poor remittances since the industry’s privatisation in 2013. As per the report, power distribution companies’ higher than allowed technical, commercial, and collection losses directly contribute to the Discos’ reduced financial capabilities, leading to inadequate payment to the Nigerian electricity supply industry.
“The Discos’ outstanding debt poses a major challenge to the realization of the government’s efforts to improve electricity supply across the country. Therefore, the Discos must prioritize and improve their operational efficiency and remittances to enable the power sector to meet the increasing demand for electricity,” says an industry analyst.
A significant remittance shortfall presents a significant obstacle to the Nigerian power sector’s progress. There is an urgent need for the Nigerian Government to guarantee the efficient operation of the power sector by increasing investment, implementing better regulation, and ensuring that the DisCos fulfill their obligations for an adequate supply of electricity.
The President of the Nigeria Consumer Protection Network and Coordinator of Power Sector Perspectives, Kunle Olubiyo, has called on the new government led by President Bola Tinubu to take a comprehensive approach to the Nigerian power sector. According to him, there is a need to review the privatisation of the successor distribution and generation companies of the defunct Power Holding Company of Nigeria in November 2013.
It is essential to review the privatisation due to the poor performance of the power distributors since privatisation, he added. He also stated that the 10-year moratorium on power sector privatisation would end in October this year. He advised that the authorities should tread carefully to prevent litigation since the period has been granted to privatised companies.
Olubiyo said, “It is essential to understand the sector’s complex value chain before reviewing the privatisation.” He suggested that, in addition to reviewing the privatisation, a national power supply coverage goal should be established to incentivise private investors and improve power distribution.
A holistic approach would be required to address the power sector’s challenges successfully. It is critical for the Nigerian government to work collaboratively with stakeholders and create enabling policies to attract direct private investment into the power sector.
The Director-General of the Nigerian Electricity Liability Management Company, Adebayo Fagbemi, praised the involvement of banks in the power sector’s day-to-day operations, noting that the presence of banks had curbed the unprecedented impunity in the power sector. He emphasised that the absence of regulatory policy surrounding the power sector had made it difficult for the industry to progress, making the involvement of banks essential.
Fagbemi expressed concern about those who exploit the power sector for their gain. He cited the example that some people earn N15bn monthly and still withhold necessary remittances for services rendered. The absence of enforcement had contributed to a culture of impunity in the power sector, according to Fagbemi. He believes that without banks’ involvement, it would be impossible to curtail corruption in the power sector.
The Nigerian Electricity Supply Industry has struggled with a liquidity crisis, particularly as a result of the Discos’ inadequate remittances since the sector’s privatisation. For the Nigerian power sector to progress, regulatory policies must be enforced. In addition, direct investment by banks, coupled with regulatory enforcement, may be the solution to strengthening the power sector and increasing access to electricity in the country.
Energy
MainPower Electricity to Commence Mobile MAP Metering – Customers to Get Metered Within 72 Hours
In a major step towards eliminating estimated billing and enhancing customer satisfaction, the MainPower Electricity Distribution Limited (MEDL) has announced plans to commence Mobile MAP Metering Program across its network, to fast-track the metering process for unmetered customers.
The metering initiative, which will kick off on Wednesday, July 30, 2025, with its Abakpa and Ogui Districts, offers customers the opportunity to get metered within 72 hours.
The Head, Corporate Communications, MEDL, Mr. Emeka Ezeh, who made this known in a release issued on Monday said that the Mobile MAP Metering Program aligns with the company’s commitment to bridging the existing metering gap, improving transparency in billing, and empowering customers with more control over their electricity consumption.
According to him, the program will be conducted in phases across various district offices, ensuring that all unmetered customers have access to quick and convenient metering options.
The company has urged customers in the selected districts to take advantage of the opportunity, emphasizing that accurate metering empowers users to take full control of their energy consumption and eliminates billing disputes.
Customers who are interested in the program are required to visit the designated locations with a copy of their electricity bill and a valid means of identification.
He also said that the approved meter prices range from N137,062.50 for a Single-Phase meter to N227,900.00 for a Three-Phase meter, and that the costs which are subject to monthly review are inclusive of 7.5% VAT.
Ezeh emphasized that payment for meters during the program would be with Debit Cards (ATM Cards) only, as cash transactions will not be accepted.
He assured customers that there are no extra or hidden charges involved in the process other than the payment for the meter and encouraged them to report any form of extortion by using its established whistle blowing line (08146026678).
The company encouraged unmetered customers within the specified districts to take advantage of this metering program to get metered faster.
Ezeh stated that while this mobile metering exercise is ongoing, the regular MAP metering process remains available. Customers who are unable to participate in the mobile program can still walk into any of the company’s district offices or visit the official website to apply for a meter through the standard application process.
“Our goal is to ensure more of our customers are metered and are able to manage their energy consumption” Ezeh added.
Energy
JUST IN – Enugu Electricity Regulatory Commission Issues New Tariff, Crashes Band A from N209 to N160
••• Freezes Bands B, C, D and E Tariffs
The Enugu State Electricityv Regulatory Commission (EERC), has issued a new tariff to MainPower Electricity Distribution Limited, the utility that succeeded Enugu Electricity Distribution Company, (EEDC), for electricity distribution in the state, reviewing electricity cost for Band A from N209/ kWh (per kiloWatt) to N160 kWh, effective from August 1, 2025.
This was contained in the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, issued by the Commission at the weekend.
It said its decision was cost reflective, insisting that tariff must reflect power generation subsidy by the federal government for the benefit of electricity consumers.
EERC predicated its action on the Enugu State Electricity Law 2023, which empowers the Commission to regulate the activities of operators in power generation, transmission, and distribution in and exclusively for the state.
This Law signed by Governor Peter Mbah of Enugu State in September 2023, is pursuant to the 2023 Constitutional Amendment which firmly established the legislative authority of the states on electricity matters within their states. This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.
Throwing more light on the development, EERC Chairman, Chijioke Okonkwo, said that the reduction in tariff became imperative following the Commission’s review of MainPower’s tariff and licence applications as the new subsidiary company (SubCo) that operates in Enugu State.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.
“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.
“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen.
“Band A, at N160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy,” Okonkwo stated.
He noted, however, that the N160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” the Commission’s Chairman added.
Meanwhile, EERC also said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s compliance with service commitments so that its customers do not pay more for less power.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.
“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.
“Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.
“The Commission is committed to working with industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment,” the Commission concluded.
The Enugu State Electricity Regulatory Commission (EERC), has issued a new tariff to MainPower Electricity Distribution Limited, the utility that succeeded Enugu Electricity Distribution Company, (EEDC), for electricity distribution in the state, reviewing electricity cost for Band A from N209/ kWh (per kiloWatt) to N160 kWh, effective from August 1, 2025.
This was contained in the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, issued by the Commission at the weekend.
It said its decision was cost reflective, insisting that tariff must reflect power generation subsidy by the federal government for the benefit of electricity consumers.
EERC predicated its action on the Enugu State Electricity Law 2023, which empowers the Commission to regulate the activities of operators in power generation, transmission, and distribution in and exclusively for the state.
This Law signed by Governor Peter Mbah of Enugu State in September 2023, is pursuant to the 2023 Constitutional Amendment which firmly established the legislative authority of the states on electricity matters within their states.
This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.
Throwing more light on the development, EERC Chairman, Chijioke Okonkwo, said that the reduction in tariff became imperative following the Commission’s review of MainPower’s tariff and licence applications as the new subsidiary company (SubCo) that operates in Enugu State.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.
“The price is low due to some reasons and including the fact the Federal Government is subsidising electricity generation cost which comes to a cost of about ₦45 out of the actual cost of ₦112 for Enugu State. That was how we came about the average tariff of ₦94 as cost reflective tariff at our level as a subnational electricity market.
“The actual PPA cost of any power purchase made by Mainpower out side the one subsidized by Federal Government, through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government”.
“Breaking this across the various tariff bands means that Band A will be paying ₦160 while other Bands B, C, D, and E are frozen.
“Band A, at ₦160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy,” Okonkwo stated.
He noted, however, that the ₦160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” the Commission’s Chairman added.
Meanwhile, EERC also said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s compliance with service commitments so that its customers do not pay more for less power.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.
“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.
“Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.
“The Commission is committed to working with industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment,” the Commission concluded. GMTNewsng
Energy
Abia Lawmakers Applaud Aba Power’s Free Mass Metering Drive
Two members of the Abia State House of Assembly have lauded Aba Power for the utility’s ongoing aggressive distribution of smart meters in its coverage area.
Aaron Uzodike, chairman of the state legislative Committee on Power and Utilities, and Uche Onye, a member of the committee, made the commendation in two separate interviews with journalists after visiting the Aba Power headquarters in the Osisioma Industrial Layout in Aba to inspect the first batch of 20,000 smart meters from China which are being distributed as the company resumed its free mass meter roll-out last week.
“We can’t deny the evidence of our own eyes”, Uzodike stated. “They are not just 20,000 meters available as Aba Power pledged to members of the Abia State House of Assembly for distribution within one month when we invited them on two occasions to Umuahia, but are also state of the art.
“What is more, they are being given to customers free of charge, though it is costing Aba Power at least N3.4 billion for every 20,000 units of one-phase meter and three-phase meter”.
The Committee chairman on Power and Public Utilities explained that the electricity company was invited to the House of Assembly following a petition by three persons purporting to be members of the Abia Electricity Consumers Forum, an unregistered organization, claiming that there were not enough prepaid meters in the territory covered by the utility.
“We are delighted that the 20,000 smart meters being distributed now are from just one firm called Eves Metering, a Chinese firm”, the legislator remarked.
Three other metering firms are supplying at least 20,000 units each, and they include an indigenous one named Kayz Consortium which has moved its machines and equipment to the Geometric Power premises in the Osisioma Industrial Layout to start assembling them there.
Uzodike praised Geometric Power for assisting Kayz to airfreight the meters which increased the costs of providing the smart meters, but noted that “it is a manifestation of the seriousness which the Geometric Power attaches to the smart meter installation project”.
On his part, The Honourable Onye expressed satisfaction that Aba Power has set a target of providing smart meters to 100,000 customers this year alone.
He welcomed the new system of providing a compound of “four flats with four state-of-the-art prepaid meters and a compound of eight flats with eight smart meters, unlike in the past when the entire compound would be saddled with only one meter, thus creating controversy, confusion and disagreements which sometimes resulted in physical fights by the flat occupants.
“The new system makes for transparency and responsible use of electricity”.
Onye also commended Aba Power for providing meters to customers on “a feeder by feeder basis and from end to end because it makes for orderliness, transparency, trust, and peace”.
Customers on the Aba-Owerri Feeder are being given free meters, and the areas under it include Umuode Village, Tonimas Junction, the Old Aba-Owerri Expressway, and the Power Line Area.
There are 31 feeders in the Aba Ring-fenced Area comprising nine of the 17 local government areas in Abia State. Four other feeders were fully provided with smart meters during the first phase of the mass metering campaign which ended four months ago.
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