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| Nigeria's Electricity Generation Sees 9.1% Drop in Q1 2024 Amid Declining Generation Capacity and Rising Consumer Complaints Image credit: Pixabay |
In the first quarter of 2024, Nigeria experienced a significant decline in its electricity generation, with total output dropping by 901.94 GWh compared to the last quarter of 2023. This marks a 9.1% decrease, bringing the total electricity generated down from 9,789.87 GWh in Q4 2023 to 8,887.93 GWh in Q1 2024. The decrease is attributed to reduced capacities in 17 of the 27 grid-connected power plants, as outlined in the 2024 first quarter report by the Nigeria Electricity Regulatory Commission (NERC).
Decline in Generation Capacity and Hourly Power Output
The NERC report further reveals a decline in the average available generation capacity across Nigeria's power plants, which dropped by 13.68% from 4,922.26 MW in Q4 2023 to 4,249.10 MW in Q1 2024. This reduction in capacity also led to an 8.22% decrease in average hourly power generation, falling from 4,433.82 MWh/h in the previous quarter to 4,069.57 MWh/h in the current quarter. The report highlights that the overall reduction in electricity generation was primarily driven by the decreased capacity of the grid-connected power plants.
Discos See Reduced Energy Offtake but Increased Revenue Collection
Despite the drop in electricity generation, the average energy offtake by Distribution Companies (DisCos) also declined in Q1 2024. DisCos recorded an offtake of 3,283.87 MWh/h, down by 11.56% or 429.29 MWh/h compared to the 3,713.16 MWh/h reported in Q4 2023. However, revenue collection by DisCos from final consumers saw a 5.32% increase, rising from 73.79% in Q4 2023 to 79.11% in Q1 2024. In monetary terms, DisCos collected N291.62 billion out of the N368.65 billion billed during the quarter.
Meter Installations on the Rise
The first quarter of 2024 also witnessed an increase in meter installations, with a total of 123,604 meters installed between January and March. This represents a 7.31% increase, with 8,423 more meters installed compared to the previous quarter. The rise in installations contributed to a slight improvement in the net end-user metering rate within the Nigerian Electricity Supply Industry (NESI), which climbed from 44.39% in Q4 2023 to 44.79% in Q1 2024.
Consumer Complaints Decrease Slightly in Q1 2024
The report also noted a decrease in consumer complaints received by DisCos in Q1 2024. A total of 291,380 complaints were recorded, reflecting a 6.22% decrease or 19,337 fewer complaints compared to the 310,717 complaints reported in Q4 2023. The majority of these complaints were related to metering, billing, and service interruptions, which together accounted for more than 75% of the total issues reported by consumers during the quarter.
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