Energy distributors reject 114.53 MW/h in Q2 2023, reveals NERC report

The Nigerian Electrical energy Regulatory Fee (NERC) has revealed that energy distributors grappled with a considerable common load rejection within the second quarter of 2023, regardless of the nation’s persistently low energy provide. In response to NERC’s newest report for the 2023 Second Quarter, the facility distributors declined a median of 114.53 megawatt-hours per hour of electrical energy throughout this era.

Along with the load rejection, the report additionally highlighted that energy distributors managed to put in 178,864 new meters for customers throughout the identical quarter.

Nevertheless, there was a major improve in complaints from energy customers, which surged by roughly 31 %. The rise in grievances was attributed to persistent mechanical faults and gasoline provide constraints that hampered energy technology in Q2.

NERC’s knowledge indicated that every one 11 energy distribution corporations in Nigeria accepted much less electrical energy than their contracted capacities, leading to a median cumulative load rejection of 114.53 MWh/h. This load rejection occurred amid energy outages that affected quite a few places throughout the nation.

Learn additionally:Businesses bleed as electricity gulps N221bn in H1

All through the three-month interval, the collective common vitality offtake of the 11 Discos amounted to three,251.31 MWh/h, whereas their accessible partially contracted capability stood at 3,365.84 MWh/h.

NERC clarified the vitality offtake efficiency by explaining that since July 2022, when the Nigeria Electrical energy Provide Business transitioned to the Partial Activation of Contract regime, the goal quantity of vitality to be offtaken by Discos had been outlined as their partially contracted capability.

Beneath the PAC regime, Discos had take-or-pay obligations associated to their PCC, obliging them to pay for accessible capability, no matter their precise vitality offtake. These findings make clear the advanced challenges confronted by energy distributors within the ever-evolving Nigerian vitality panorama.

“This construction is in step with worldwide greatest practices for long-term contract-based energy procurement and ensures that Gencos (technology corporations) earn capability funds to compensate them for availability.

“To curtail this apply, the fee included load offtake as a key metric in its KPI Order—Order on Efficiency Monitoring Framework (NERC/316-326/2022), which was issued to Discos efficient October 2022.

“The order gives that persistent load non-offtake to sure thresholds might set off regulatory actions towards the administration of the Discos,” the NERC said.

It added that “in 2023/Q2, the common vitality off-take by Discos at their buying and selling factors was 3,251.31 MWh/h, and it reveals a lower of -218.82 MWh/h (-6.31 %) when in comparison with 3,470.13 MWh/h off-take in 2023/Q1.

“Throughout the quarter, all of the Discos took lower than their accessible PCC besides Eko Disco, which recorded an offtake efficiency of 116.90 % and can subsequently profit from diminished wholesale vitality prices.”

However, the fee has made it clear that it intends to make use of its efficiency monitoring framework to implement regulatory measures towards distribution corporations (discos) falling wanting their Key Efficiency Indicator (KPI) targets for electrical energy offtake.

Learn additionally:Electricity subsidy tripled to ₦135 bn in Q2 — NERC

Concerning metering, the report disclosed {that a} whole of 178,864 meters have been deployed through the second quarter of 2023, marking a 2.04 % improve when in comparison with the 175,281 meters put in within the first quarter of 2023.

It said, “Throughout the quarter, 168,397 meters have been put in below the MAP (Meter Asset Supplier) framework, whereas 9,302 meters have been put in below the NMMP (Nationwide Mass Metering Programme) framework.

“The seller and Disco Financed framework recorded 1,143 and 22 meter installations, respectively.”


As of June 30, 2023, there have been a complete of 12,561,049 registered electrical energy prospects, with 5,546,483 of them, or 44.16 %, having been supplied with meters. Notably, Ikeja, Ibadan, Abuja, and Enugu Discos led in meter installations through the second quarter of 2023, contributing to 72.69 % of the whole installations.

By way of buyer complaints, NERC reported a major improve, with a complete of 325,898 complaints acquired within the second quarter of 2023 throughout all Discos. This determine marked a considerable rise of 30.52 %, translating to 76,215 extra complaints in comparison with the 249,683 acquired within the first quarter of 2023.

Ibadan Disco registered the very best variety of complaints, with 55,110 complaints, accounting for 16.91 % of the whole complaints, whereas Yola Disco had the fewest complaints, with solely 2,662, making up simply 0.82 % of the whole complaints acquired, in keeping with the regulator’s report.