Oil & Energy
DisCos’ Annual Revenue Hits N466bn
Power distribution companies have set a new record of N466 billion in their yearly revenue collection, the Association of Nigerian Electricity Distributors has said.
ANED, which is the umbrella body for all the Discos, said the revenue collection rose by 10 per cent.
“This 10 per cent increment is even more remarkable if we keep in mind that the energy received from the Transmission Company of Nigeria has only grown +1.5 per cent and therefore 8.5 points of the increment is due to Discos’ performance improvement,” it said in its Discos’ Performance Report for the third quarter of 2019.
The Discos collected a total of N466bn from customers from October 2018 to September 2019, compared to the N423bn collected from October 2017 to September 2018, the ANED data showed.
The power firms received 26,766 gigawatts-hour of electricity from October 2018 to September 2019 and billed the consumers 21,650 GWh (an equivalent of N693bn).
ANED said the uncertainty on the energy to be received from the TCN had become a major threat for Discos in terms of reduction of Aggregate Technical, Commercial and Collection losses.
“Ikeja Electric has broken a new record in the ATC&C losses with 24 per cent in June, reducing 6.1 points in one year. Additionally, two other Discos have shown a great improvement in reducing the ATC&C losses in the last 12 months: Kano Electricity Distribution Company Plc reduced 5.8 points and Jos Electricity Distribution Company Plc, 8.3 points,” it said.
According to the report, the collection efficiency peaked in July 2019 at 74.5 per cent and the average of the quarter is a new record of 70 per cent.
ANED said, “Although the energy received by Discos has not increased much (only 1.5 per cent), the improvement of Discos’ performance has reduced the ATC&C losses from 49.2 per cent to 45.6 per cent with an increment in the collection of N43bn, reaching a total of N466bn last year.”
It said Discos’ revenue collection rose to N118bn in Q3 2019 from N105bn in the same quarter of 2018.
“The overall ATC&C losses keep decreasing and have reached a new record of 45.5 per cent. However, some Discos begin to show signs of fatigue in their performance improvement,” ANED said.
Discos have reduced their ATC losses from 22.5 per cent in June 2017 to 19.1 per cent in September 2019, according to the report.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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