{"id":122807,"date":"2025-10-07T18:06:11","date_gmt":"2025-10-07T17:06:11","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=122807"},"modified":"2025-10-07T18:06:11","modified_gmt":"2025-10-07T17:06:11","slug":"inefficiency-costs-discos-%e2%82%a6158-billion-in-2025-q2-says-nerc","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/inefficiency-costs-discos-%e2%82%a6158-billion-in-2025-q2-says-nerc\/","title":{"rendered":"\u200eInefficiency Costs DisCos \u20a6158 Billion in 2025 Q2, Says NERC\u00a0"},"content":{"rendered":"
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By Daniel Adaji<\/div>\n
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\u200e<\/div>\n
\u200eThe Nigerian Electricity Regulatory Commission (NERC) has revealed that electricity distribution companies (DisCos) across the country lost about N158.05 billion to inefficiencies in their operations during the second quarter of 2025.<\/div>\n
\u200e<\/div>\n
\u200eAccording to the Second Quarter 2025 NERC Report released on Tuesday, the losses were traced to Aggregate Technical, Commercial and Collection (ATC&C) inefficiency, a key indicator of the sector\u2019s financial and operational health.<\/div>\n
\u200e<\/div>\n
\u200eThe report stated that the weighted average ATC&C loss across all DisCos stood at 37.92 percent in the period under review, representing a slight improvement from the 39.61 percent recorded in the first quarter of 2025.<\/div>\n
\u200e<\/div>\n
\u200e\u201cThe ATC&C loss of 37.92 per cent is 17.38 percentage points higher than the 2025 MYTO target of 20.54 per cent and translates to a cumulative revenue loss of N158.053 billion across all DisCos,\u201d NERC said.<\/div>\n
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\u200eThe Commission explained that ATC&C losses combine technical and commercial losses, arising from the inability of distribution companies to account for all energy delivered to customers, and collection losses resulting from failure to recover billed revenue.<\/div>\n
\u200e<\/div>\n
\u200eWhile the report noted a marginal improvement in overall performance, none of the DisCos, except Eko Electricity Distribution Company (EKEDC), met their ATC&C loss targets during the period. Kaduna Electric recorded the poorest performance, with an actual ATC&C loss of 70.98 percent against a target of 21.32 percent.<\/div>\n
\u200e<\/div>\n
\u200eThe Commission attributed the high losses to inefficiencies in billing, energy theft, and inadequate collection mechanisms by DisCos. \u201cAll the DisCos except Eko failed to achieve their target ATC&C during the quarter,\u201d the report stated, adding that collection losses alone accounted for 23.93 percent, while technical and commercial losses contributed 18.39 percent.<\/div>\n
\u200e<\/div>\n
\u200eDespite the losses, the report indicated a modest rise in revenue collection. DisCos collectively billed N742.34 billion worth of energy in the quarter but managed to collect N564.71 billion, achieving a collection efficiency of 76.07 percent, up from 74.39 percent recorded in the first quarter.<\/div>\n
\u200e<\/div>\n
\u200eBilling efficiency for the same period was 81.61 percent, showing that distribution companies failed to account for \u20a6167.25 billion worth of energy received at their trading points.<\/div>\n
\u200e<\/div>\n
\u200eThe NERC report further disclosed that the total market invoice payable by DisCos stood at N417.35 billion, out of which they remitted N399.20 billion \u2014 representing a 95.65 per cent remittance performance.<\/div>\n
\u200e<\/div>\n
\u200eWhile acknowledging the slight improvement, the Commission emphasised that sustained ATC&C inefficiencies continue to undermine the liquidity of the Nigerian Electricity Supply Industry (NESI), threatening investment and service delivery.<\/div>\n
\u200e<\/div>\n
\u200eNERC reiterated its commitment to enforcing performance improvement plans and regulatory compliance among market participants, noting that financial discipline in the distribution segment remains critical to achieving the objectives of the Electricity Act 2023.<\/div>\n
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