The Federal Government (FG) through the Nigerian Electricity Regulatory Commission (NERC) has approved N153.2 million in CAPEX for the 11 Electricity Distribution Companies starting January 1, 2024.
The adjustments require DisCos to commit to service improvement programs that improve power supply, reduce Aggregate Technical, Commercial, and Collection losses (ATC&C), implement effective billing and payment structures, and improve customer metering.
Each DisCo received new CAPEX packages under the Performance Improvement Plans (PIP) in separate orders after engaging with NERC to justify costs and tariffs.
The recently released Commission Multi-Year Tariff Order (MYTO) 2024 shows that DisCos have different approved CAPEX.
Eko Electricity Distribution Company (EKEDC), Ikeja DisCo, and Abuja Electricity Distribution Company (AEDC) received the most, N23 billion, N19 billion, and N18 billion, respectively.
Yola Electricity Distribution Company (YEDC) received the least, about N7 billion.
The allocated funds should help DisCos grow their service improvement investment programs.
The Commission approved N6.25 billion for each DisCo to install 65,000 meters annually from the total funds, phasing out estimated billing methods.
The DisCos meter roll-out program’s annual cost is set from 2023-2027.
Additionally, the Regulator set new DisCo Aggregate Technical, Commercial, and Collection (“ATC&C”) loss targets.
The Order stated that the DisCos wanted to review their new baseline ATC&C loss levels.
“The approved ATC&C loss level is fair and reasonable given current operating conditions and comparable benchmarks within and outside NESI,” it said.
The Commission set a baseline ATC&C loss level of 25%, 20.6 percent, 16.97 percent, and 13.99 percent for AEDC from 2024 to 2027.
