News
Nigeria’s Widening Metering Gap and Rising Estimated Billing Customers
Nigeria is facing significant challenges in its effort to eliminate estimated billing by the end of 2024. The recent increase in the number of customers on estimated billing across the country’s electricity distribution companies (DisCos) highlights these hurdles. According to the Nigeria Electricity Report by the National Bureau of Statistics (NBS) for the first quarter of 2024, there has been a 10% quarter-on-quarter increase in estimated billing customers, widening the metering gap.
Key Findings
- Increase in Estimated Billing Customers:
- The number of customers on estimated billing rose from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a 10% increase.
- Year-on-year, the number of estimated billing customers increased by 8%, from 5.96 million in Q1 2023.
- Challenges and Government Subsidies:
- The government continues to subsidize customers not on Band A, while Band A customers on estimated billing still pay based on estimation.
- This increase highlights the persistent inability to adequately meter all customers, leading to a reliance on estimated billing.
- DisCo-Specific Data:
- Ibadan Electricity Distribution Company (IBEDC): Recorded the highest number of estimated billing customers at 1.41 million in Q1 2024, up from 1.37 million in the previous quarter.
- Enugu Electricity Distribution Company (EEDC): Saw a significant increase to 765,662 customers from 709,104 in Q4 2023.
Customer and DisCo Disputes
The reliance on estimated billing often leads to disputes between consumers and DisCos. Many consumers feel that the estimates are inflated and do not reflect their actual consumption, prompting calls for more accurate metering.
Regulatory Actions
The Nigeria Electricity Regulatory Commission (NERC) fined 11 electricity distribution companies a total of 5 billion Naira for non-compliance with mandatory capping of estimated billing for unmetered customers.
Metering Progress and Challenges
- Metered Customer Growth:
- The report shows a modest 5% quarter-on-quarter increase in metered customers, from 5.61 million in Q4 2023 to 5.91 million in Q1 2024.
- Year-on-year, metered customers increased by 11%, from 5.31 million in Q1 2023.
- DisCo Challenges:
- DisCos face financial constraints, logistical issues, and regulatory hurdles in closing the metering gap.
- Abuja Electricity Distribution Company (AEDC): Increased its metered customers to 892,028 in Q1 2024.
- Benin Electricity Distribution Company (BEDC): Raised its metered customers to 672,179 in Q1 2024.
Total Customer Base
The total number of customers served by DisCos in Nigeria has shown consistent growth:
- In Q1 2024, the total customer base grew to 12.33 million from 12.12 million in Q4 2023, a quarter-on-quarter rise of 2%.
- Year-on-year, this represents a 9% increase from 11.27 million in Q1 2023.
Notable DisCo Data:
- Ibadan Electricity Distribution Company (IBEDC): Highest total number of customers at 2.48 million in Q1 2024.
- Enugu Electricity Distribution Company (EEDC): Substantial customer base with 1.39 million in Q1 2024.
- Abuja Electricity Distribution Company (AEDC): 1.46 million customers, reflecting a significant presence in the capital region.
Presidential Campaign and Policy Implementation
President Bola Tinubu’s campaign manifesto outlined plans to eliminate estimated billing and ensure all Nigerian homes and businesses are equipped with prepaid meters. Despite these intentions, the number of estimated billing customers has seen the largest growth rate both quarterly and yearly under his administration, based on data up to 2022.
Financial and Operational Impact
The rise in estimated billing has led to collection losses for DisCos. Revenue collected by DisCos dropped by approximately 1.13%, from N294.95 billion in Q4 2023 to N291.62 billion in Q1 2024. This decline underscores the financial strain on DisCos and the urgent need for comprehensive metering solutions.
Conclusion
Addressing the metering gap requires concerted efforts from all stakeholders, including government support, investment in metering infrastructure, and improved regulatory frameworks. While there has been progress in increasing the number of metered customers, the rate of growth is insufficient to counterbalance the rapid rise in estimated billing customers. Comprehensive metering is essential for efficient billing, revenue collection, and overall customer satisfaction in Nigeria’s electricity sector.
As Hurricane Milton approaches Florida’s west coast, a powerful tornado has hit a highway, further escalating the dangerous conditions brought by the massive Category 4 storm. With sustained winds near 145 mph, Milton is expected to make landfall soon, bringing a life-threatening storm surge of up to 15 feet between Tampa and Port Charlotte, according to Michael Brennan, the director of the National Hurricane Center.
Brennan warned that urban and flash flooding could persist into Thursday, posing a significant risk, especially given the tragic loss of 16 lives in the same area during Hurricane Ian in 2022. He explained that Tampa is particularly vulnerable, with even a minor shift in the storm’s path potentially directing the worst of the storm surge directly into the city.
“As close as we are to landfall, it’s not really possible to tell exactly where that worst surge will occur,” Brennan cautioned, noting that a “wobble” in the storm’s track could move it by just 10 or 20 miles, drastically altering the impacts.
Brennan highlighted that Tampa Bay’s geography funnels water into the region, which could lead to a storm surge potentially double what the city experienced during Hurricane Helene. Florida’s western and northeastern coasts are bracing for some form of surge, but Tampa remains one of the most at-risk areas, where surges could reach up to 15 feet.
Residents in affected areas are urged to heed evacuation orders and take immediate precautions as the storm bears down on Florida’s vulnerable coast.
A state of emergency has been declared across parts of Florida as the Gulf Coast faces the threat of another major storm, just days after being ravaged by Storm Helene. The National Hurricane Center has issued warnings for Tropical Storm Milton, which is expected to strengthen quickly and potentially bring life-threatening conditions to the region.
Currently hovering off the coast of Mexico with wind speeds of 60 mph (95 km/h), Storm Milton is forecasted to intensify and make landfall along Florida’s west coast by mid-week. This comes as the state is still grappling with the devastation left by Storm Helene, which tragically claimed over 225 lives in the southeastern U.S., including 14 in Florida. Hundreds of people remain unaccounted for in the wake of the deadly storm, which was the worst since Hurricane Katrina.
Governor Ron DeSantis has issued an emergency warning for 35 counties and assured residents that efforts are underway to restore power, clear roads, and prepare for the possibility of another major storm. Heavy rainfall is predicted, with the potential for flash flooding and river flooding as the storm intensifies. The Florida Peninsula and Keys could see between 5 to 12 inches (127 to 304 mm) of rain, adding to the urgency of storm preparations.
With Storm Milton posing another serious threat, authorities are urging residents to stay informed and take necessary precautions as the state braces for a difficult week ahead.
Severe flash floods and landslides in central Bosnia-Herzegovina have claimed at least 14 lives, with entire towns and villages left isolated by the destruction. The hardest-hit areas include the region around Jablanica, a town located between the cities of Mostar and Sarajevo, where homes were submerged, and landslides buried buildings in debris.
After an intense overnight storm, rivers overflowed, causing widespread flooding and leaving many people missing. Authorities have declared a state of emergency as they continue rescue and recovery efforts. Development Minister Vojin Mijatovic described the situation as a “terrible disaster” and urged residents to remain calm.
The floodwaters washed away roads, bridges, and railways, leaving infrastructure in ruins. In some areas, aerial images show communities completely inundated, with landslides further complicating rescue operations. A critical section of the M-17 road near Jablanica has been blocked by debris, and part of a railway track was left hanging after a landslide.
In Herzegovina-Neretva Canton, local officials have warned drivers to stay off roads near Jablanica due to the hazardous conditions. To the west, around Kiseljak, floodwaters left cars submerged and streets completely underwater, adding to the devastation. As rescue teams work tirelessly, the number of casualties is feared to rise in the coming days.
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