NGO accuses DISCO of making consumers pay for losses


The Roundtable for the Growth and Development of Power (RODEP), an NGO, says Electricity Distribution Companies (DISCOs) are making Nigerians pay for their losses instead of services rendered.

This is contained in a statement signed by the group’s Coordinator, Chidi Ike, and made available to the News Agency of Nigeria (NAN) on Wednesday in Abuja.

RODEP said this was revealed by a survey it conducted on the current tariff billing system of the DISCOs.

“There are three major types of losses encountered in the utility billing system business: Technical, Commercial and Collection losses.

“The aggregation of the losses or methodology for assessing the overall health of a utility billing is termed as Aggregate, Commercial and Technical Loss (ATC&C),’’ it said.

The group said the technical losses were those incurred in the physical equipment used in the transmission and distribution of electricity.

It, however, said this type of energy loss was not abnormal but could become problematic when“ values recorded are above prescribed thresholds’’.

According to RODEP, the commercial losses arise when billing is sub-optimal where the billing process fails to capture or account for all billable energy due to inadequate metering, pilferage or internal collusion.

It said, however, that collection losses usually occurred when utilities failed to collect revenue in consonance with billed quantities.

The statement gave example of a DISCO whose ATC&C Loss of 59.1 per cent showed that the tariff was being adjusted to incorporate DISCO losses as the actual services customers were paying for was just 40.9 per cent.

“That means nearly 60 per cent of energy charged is to offset losses incurred by the Disco.

“The public is made to bear the burden of non-paying customers, imagine how low the tariff in this DISCO will be if the losses were not or, at least, comparable to what is obtainable elsewhere,’’ Ike said.

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  • emmanuel kalu

    This problem is due to ineffective collection and metering of consumer. we have MDA owing discos huge amount of money, that this discos are now trying to collect from residential consumer. It is very important that meter be provided immediately to every consumer, so as to accurately bill and collect payment. we need to immediately meter consumer instead of increasing traffic.

  • amador kester

    Its the most schizophrenic cost recouping business strategy ever witnessed in the developing world and emerging markets