DisCos Lose N20 billion Monthly Due To Collection Gap

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The Electricity Distribution companies (DisCos) have in time past declared that they are presently incurring huge losses from their operations due to poor payment responses from customer and collection losses. This was further reiterated by the Chief Corporate Service Officer, Kaduna Electricity Distribution Company, KADECO, Uday Mishra in Kaduna, during an interactive session when he noted that DisCos lose about N20 billion monthly across the country due to ”collection gap”. He further stated the other challenges surrounding the DisCos’ activities nationwide.

According to Mr Mishra, the major challenge as regards electricity distribution in the country is the non-payment of bills by about 60 per cent consumers.

 

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“All DISCOs are surviving hardly because they have just 40 per cent of legal consumers on their billing net while the majority of consumers are involved in bypassing, theft, non-payment of bills and direct hooking. We call on consumers to take care of their duties by paying bills and disengaging in any kind of electricity theft, the company disconnects as last resort which is also costly and time-wasting,” he said.

Speaking on other issues faced by the distribution company, he regretted that honest consumers suffer infrequent electricity supply because they have to subsidise other non-payers and electricity thieves. He also called on the government to subsidise electricity tariff for agriculture-related projects, low-income groups and the poor masses residing at the slums.

 

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The Head of Compliance, KADECO, Lawal Lawal explained that the company is only entitled to 8 per cent of the power generated daily in the country, which it distributes to Kaduna, Sokoto, Zamfara and Kebbi States.

“We have no option than to ration supply because electricity is solely dependent on gas in Nigeria. Our total demand is 600 megawatts but we rarely receive 300 for distribution daily. Kaduna even gets more supply due to high population and other economic activities when compared to its the other states, yet, the supply is poor,” Mr Lawal said.

He attributed the low distribution of electricity to little supply from the source, adding that, the poor revenue collected from consumers affects the company’s health.

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About Omobright 302 Articles
A FUTA Alumnus, a geophysicist, a cartographer, a freelance writer and poet. Loves adventure, music, movies, football and food. Hates monotony. Hobbies are reading, writing and travelling. Interested in human, society, academics and power(energy) sector.

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