Consumers pay N243bn for electricity as generation hits 4,334MW

Consumers in the country paid N247.09 billion for electricity in the first quarter of 2023, an increase of 1.14 percent compared to N243.65 billion paid in the fourth quarter of 2022, as the latest report from the Nigerian Electricity Commission, NERC, has shown.

In its 2023 first quarter report released yesterday, the Commission explained that the total revenue collected by all the electricity distribution companies represented a collection efficiency of 68.75 percent.

It stated that the DisCos cumulative collection efficiency reduced by 4.58 pp from 73.33 percent in 2022/Q4 to 68.75 percent in 2023/Q1. The report added that the total energy billed increased by 8.15 percent (compared to N332.28 billion in 2022/Q4).

According to NERC, The 2022/Q4 to 2023/Q1 decline in collection efficiency was largely driven by Ibadan, Yola, Kaduna, and Abuja, whose collection efficiencies decreased by 15.50 pp, 10.20 pp, 8.49 pp and 5.29 pp respectively. Conversely, only Jos DisCo recorded an improved collection efficiency of 4.48 pp.

The report disclosed that in 2023/Q1, the average hourly generation on the grid was 4,334.41 MWh/h, which indicated an increase of 92.05 MWh/h (2.16 percent) compared to 4,242.36 MWh/h in 2022/Q4.

It explained that “the overall increase in average hourly generation within the quarter was due to an increase in the available capacity of Egbin, Afam VI, Geregu, and Sapele power plants. The biggest improvement noticed in Egbin’s hourly output is virtually proportional to the improvement in its availability. This is to be expected because Egbin plays a critical role in meeting demand in the Lagos region, which regularly accounts for 25–30 percent of national consumption”.

Also, the report, stated: “The twenty-six (26) generation stations that injected energy into the national grid in the quarter under review included eighteen (18) gas, four (4) hydro, two (2) steam, and two (2) gas/steam-powered plants.

“In 2023/Q1, the average hourly generation of all available units increased by 92.05 MWh/h (2.17%) from 4,242.36 MWh/h in 2022/Q4 to 4,334.41 MWh/h. However, the Plant Load Factor across the generation plants decreased by 9.04 pp from 95.43% in 2022/Q4 to 86.39% (2023/Q1. The decline in load factor is a result of the marginally lower increase in average hourly generation when compared to the increase in average available capacity recorded in 2023/Q1 relative to 2022/Q4.

“The total quarterly generation in 2023/Q1 was 9,350.24 GWh.” This represents a decrease of -15.41 GWh (-0.16%) from 9,365.65 GWh generated in 2022/Q4.

“Grid Performance: In 2023/Q1, the averages of daily maximum and minimum system frequencies were 50.86 Hz and 49.08 Hz, respectively.” Similar to the averages recorded in 2022/Q41, both frequencies are outside the higher and lower bounds of the normal operational limit (50 Hz0.25 Hz) approved in the grid code. The averages of daily maximum and minimum system voltages in 2023/Q1 were 352.96 kV and 299.97 kV, respectively. Both were also outside the limits set in the grid code (330 kV, 16.5 kV).”

Meanwhile, the commission has granted the embedded generation license to the Ekiti Independent Power Project (IPP) Limited, situated in the state capital, Ado Ekiti.

Mobolaji Aluko, a professor and special advisor to the state governor on infrastructure and public utilities, made this known while appearing on a live current affairs television program to review the state of utilities in Ekiti.

He said: “We are now at the last leg of the development and commissioning of the Independent power plant in the State, having received the license”.

NERC also granted an independent electricity distribution license to Olokiti Power Distribution Limited, also in Ado Ekiti.

According to Aluko, a 5-megawatt independent power plant was flagged off by the immediate past Governor, Kayode Fayemi, to put an end to the problem of epileptic power supply in the state, adding that the project would cater to the electricity supply to the Governor’s office, Government House, State Secretariat, Ekiti State University, University Teaching Hospital (EKSUTH), and the streetlights along major roads in the metropolis.

He said further that interested private concerns would also benefit from the project on a buyer and willing seller basis, saying that the IPP option would amend what he described as “the unacceptable deficiency in the electricity sector” and boost industrial development in the State.


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