News

January 2, 2022

Revenue targets to marketers reflect electricity consumption – DisCos

DisCos

By Obas Esiedesa, Abuja

Electricity Distribution Companies (DisCos) have defended revenue targets given to marketers, saying the targets were based on what customers have consumed.

The utilities in a statement issued by its umbrella body, the Association of Nigerian Electricity Distributors (ANED) pointed out that the targets were not conjured up figures.

The Nigeria Electricity Regulatory Commission (NERC) had few days ago in its key operational and financial data of the Nigerian Electricity Supply Industry (NESI) report disclosed that consumers in the country paid N565.16 billion for electricity in the first nine months of 2021.

ANED’s Executive Director for Research and Advocacy, Barr. Sunday Oduntan noted that the utilities do not encourage staff to engage in bribery and corruption, adding that estimated billing was based on scientifically verifiable method.

According to him, “any organisation that is performance driven ties staff activities and its operations as a whole to targets. It is part of the model of any good organisation. DisCos set commercial, operations, technical and even customer service targets for their staff. The commercial targets in our case are specific and based on what has been consumed.

 “Setting targets does not mean conjuring figures to meet those targets. We go out to collect what is owed. That is legitimate”, he said.

He added: “Distribution transformers are metered, so we always know the value of electricity that passed through the distribution transformer to the customers in an area. It is empirical. You cannot by any stretch equate that with a random target set with no data justifying the expectations. Now, when we match the amount collected from the users of electricity connected to a transformer against how much has been paid, it is always easy to know where there is a gap. We are simply saying people should pay us what they owe and our people are given the data on what is being owed and by whom.

“DisCos do not arbitrarily make up billing figures. Where the customer or group of customers does not have pre-paid metres, there is an approved methodology for the computation of estimated bills, designed by the Nigerian Electricity Regulatory Commission (NERC), which the DisCos follow. It ensures that the amount of energy consumed through a particular distribution transformer is paid for by those who utilise the said transformer. 

“Estimated billing is scientific and Nigeria is not the only country that practices. In addition, customers are also allowed to contest their billing. We don’t just bill people to get money”, he insisted.