In the first quarter of 2023, consumers in Nigeria paid a total of N247.09 billion for electricity, marking a 1.14 percent increase compared to the N243.65 billion paid in the fourth quarter of 2022, according to the latest report from the Nigerian Electricity Regulatory Commission (NERC).
In its 2023 first-quarter report released yesterday, the NERC explained that the total revenue collected by all electricity distribution companies (DisCos) represented a collection efficiency of 68.75 percent. This showed a decrease in cumulative collection efficiency of 4.58 percentage points, down from 73.33 percent in the fourth quarter of 2022 to 68.75 percent in the first quarter of 2023. However, the total energy billed increased by 8.15 percent compared to the previous quarter, amounting to N332.28 billion.
NERC attributed the decline in collection efficiency to the DisCos in Ibadan, Yola, Kaduna, and Abuja, whose collection efficiencies decreased by 15.50 pp, 10.20 pp, 8.49 pp, and 5.29 pp, respectively. On the other hand, Jos DisCo recorded an improved collection efficiency of 4.48 pp.
The report disclosed that the average hourly generation on the grid in the first quarter of 2023 was 4,334.41 MWh/h, showing a 2.16 percent increase compared to 4,242.36 MWh/h in the fourth quarter of 2022. This overall increase in average hourly generation was primarily due to an increase in the available capacity of power plants like Egbin, Afam VI, Geregu, and Sapele. Particularly, Egbin’s hourly output saw significant improvement, which directly correlates with its increased availability. The report noted that Egbin power plant plays a crucial role in meeting demand in the Lagos region, accounting for 25–30 percent of national consumption.
According to the NERC report, a total of 26 generation stations contributed energy to the national grid in the first quarter of 2023, including 18 gas-powered, 4 hydro-powered, 2 steam-powered, and 2 gas/steam-powered plants.
During the first quarter of 2023, the average hourly generation of all available units increased by 92.05 MWh/h (2.17%) from the previous quarter. However, the Plant Load Factor across the generation plants decreased by 9.04 percentage points, down to 86.39%, due to the marginally lower increase in average hourly generation compared to the increase in average available capacity.
The total quarterly generation in the first quarter of 2023 was reported to be 9,350.24 GWh, showing a slight decrease of -15.41 GWh (-0.16%) from the 9,365.65 GWh generated in the fourth quarter of 2022.
Regarding grid performance, the average daily maximum and minimum system frequencies in the first quarter of 2023 were 50.86 Hz and 49.08 Hz, respectively, which were outside the higher and lower bounds of the normal operational limit (50 Hz ± 0.25 Hz) approved in the grid code. Additionally, the average daily maximum and minimum system voltages in the first quarter of 2023 were 352.96 kV and 299.97 kV, respectively, also falling outside the limits set in the grid code (330 kV and 16.5 kV).
In other developments, the Nigerian Electricity Regulatory Commission has granted the embedded generation license to the Ekiti Independent Power Project (IPP) Limited, situated in the state capital, Ado Ekiti. Professor Mobolaji Aluko, the special advisor to the state governor on infrastructure and public utilities, announced this on a live current affairs television program while reviewing the state of utilities in Ekiti.
Aluko stated that the 5-megawatt independent power plant, initiated by the immediate past Governor, Kayode Fayemi, aims to put an end to the problem of epileptic power supply in the state. The project is set to cater to electricity supply in key areas, including the Governor’s office, Government House, State Secretariat, Ekiti State University, University Teaching Hospital (EKSUTH), and streetlights along major roads in the metropolis. Furthermore, private concerns will have the opportunity to participate in the project on a buyer and willing seller basis, a move that is expected to address the deficiency in the electricity sector and boost industrial development in the State.
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