NERC approves 2024 DisCo CAPEX of N153.3bn

For the 11 Electricity Distribution Companies, the Federal Government (FG) through the Nigerian Electricity Regulatory Commission (NERC) has approved N153.2 million in CAPEX effective January 1, 2024.

The changes 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.

After engaging with NERC to justify costs and tariffs, each DisCo received new CAPEX packages under the Performance Improvement Plans (PIP) in separate orders.
The Commission recently released the Multi-Year Tariff Order (MYTO) 2024, which shows DisCos’ approved CAPEX differs.

The largest amounts were approved for Eko Electricity Distribution Company (EKEDC), Ikeja DisCo, and Abuja Electricity Distribution Company (AEDC): N23 billion, N19 billion, and N18 billion.

The lowest award was N7 billion to Yola Electricity Distribution Company (YEDC).

In their service improvement investment programs, the allocated funds should help DisCos grow.

The Commission approved N6.25 billion for each DisCo to install 65,000 meters annually from the total funds, erasing estimated billing methods from their networks.

From 2023 to 2027, DisCos’ meter roll-out program is funded annually.

The Regulator also set DisCos’ Aggregate Technical, Commercial, and Collection (“ATC&C”) loss targets.

DisCos proposed a review to reset their new baseline ATC&C loss levels, the Order stated.

It said the approved ATC&C loss level is fair and reasonable given current operating conditions and comparable benchmarks within and outside NESI.

From 2024 to 2027, the Commission set a baseline ATC&C loss level of 25%, 20.6 percent, 16.97 percent, and 13.99 percent for AEDC.