DISCOs: Unmetred Electricity Consumers Cause Major Revenue Loss
So, power distributors have been accused of milking unmetred customers through estimated billing.
But, they may be shooting themselves in the foot, because it has been discovered that the highest amount of revenue losses in Nigeria’s power sector come from areas that have high concentration of unmetered consumers.
In fact, it was gathered that about 70% of revenue losses recorded by power distribution companies were from these areas.
The Executive Director, Association of Nigerian Electricity Distributors, Sunday Oduntan, and the Managing Director, Abuja Electricity Distribution Company, Ernest Mupwaya, who confirmed this on Wednesday, stated that recent studies by power firms revealed that the companies earned more from areas with higher concentration of metered power users.
“Commissioned studies have shown that we incur more losses in areas where there are no meters. Our loss level in those areas is up to 70%,” Mupwaya stated.
The duo spoke at the inauguration of the second phase of the 222,728-mass metering programme of the AEDC in Abuja.
Power distribution companies are the revenue collection firms of the sector.
A percentage of the tariff they collect is remitted to stipulated agencies and it is used to pay for the generation and transmission of more energy.
Mupwaya added: “The losses are real, and it is important to state that in areas where we have few meters, the resistance to pay is very high and the losses are huge.
“So, the losses are real because what is happening is that where we don’t have meters, it is very difficult to convince customers to pay on the basis of estimated billing.”
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