NERC: DisCos lost N141bn revenue to billing gaps in Q2

From Isaac Anumihe, Abuja

The Nigerian Electricity Regulatory Commission (NERC) has said that electricity distribution companies (DisCos) lost an estimated N141.03 billion in potential revenue in the second quarter of 2026, as weaknesses in billing and collection continued to affect the power sector.

According to NERC’s Q2 2026 report on the Nigerian Electricity Supply Industry (NESI), the DisCos collectively billed N946.57 billion during the quarter but collected N603.64 billion from electricity consumers.

The report showed that the sector’s billing efficiency stood at 78.67 per cent, resulting in an estimated N129.073 billion billing revenue loss during the period.

The commission also reported a collection efficiency of 81.06 per cent, indicating that the DisCos were unable to collect a significant portion of the revenue expected from electricity supplied and billed to customers. The figures highlight the financial challenges confronting the distribution end of Nigeria’s electricity market, where poor metering, electricity theft, estimated billing, weak collections and other commercial challenges have continued to affect the ability of DisCos to turn electricity supplied into cash.

NERC said the Q2 report examined the operational and commercial performance of the Nigerian Electricity Supply Industry, as well as regulatory activities and consumer-related issues.

On electricity supply and grid performance, the report showed that average offtake by DisCos from the national grid during the quarter stood at 3,197.03 megawatt-hours per hour (MWh/h), compared with 3,309.48MWh/h recorded in the first quarter.

This represented a decline of 112.45MWh/h, or 3.40 per cent, in the amount of electricity taken by DisCos at trading points.

The commission, however, said there were no incidents of system disturbance on the national grid during the quarter, with the grid operating within the voltage range specified by the Grid Code.

It also said the grid remained within the normal operating frequency range of 49.75Hz to 50.25Hz during the period.

NERC noted that the commercial performance of the DisCos was assessed using indicators including collection efficiency, billing efficiency and aggregate technical, commercial and collection (ATC&C) losses.

The commission said the value of energy supplied to the DisCos and their ability to bill and collect revenue remained key measures of the financial health of the electricity market.

The report showed that the DisCos’ gross expected revenue for the quarter was about N733.20 billion, while the value of energy collected represented a significant portion of the expected revenue.

The commission’s figures also point to continued gaps between the electricity supplied to consumers, the amount billed and the money ultimately collected by the distribution companies.

These gaps have remained a major concern in the power sector because DisCos depend on the revenue they collect from customers to meet their financial obligations to other participants in the electricity market and invest in infrastructure.

The Q2 figures also come against the backdrop of efforts by the Federal Government and industry regulators to improve electricity distribution, strengthen metering and reduce losses across the power value chain.

NERC said its quarterly report was intended to provide stakeholders with a clearer picture of developments in the electricity industry.

It said the document was prepared for a broad range of stakeholders, including energy economists, engineers, financial and market analysts, investors, government officials and institutions.

The commission explained that the report provides information on the operational and commercial performance of the electricity market, regulatory activities and consumer affairs.

The Q2 performance therefore underscores the need to improve the ability of DisCos to accurately measure electricity consumption, bill customers and collect payments.

For consumers, improved billing efficiency could also help reduce disputes over estimated bills and strengthen confidence in the electricity market.

For the distribution companies, better revenue collection would provide greater financial capacity to maintain networks, replace faulty equipment, expand distribution infrastructure and improve electricity supply to customers.

The latest figures indicate that while the national grid remained relatively stable during the quarter, significant challenges persisted at the distribution and revenue-collection end of the electricity market.

The challenge for the sector, therefore, remains not only increasing electricity supply but also ensuring that more of the electricity delivered to consumers is properly measured, billed and paid for.

NERC’s figures suggest that closing these gaps could unlock substantial revenue for DisCos and strengthen the financial sustainability of Nigeria’s electricity market.

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