The Nigerian Electricity Regulatory Commission has stated that electricity distribution companies (DisCos) achieved an increased energy offtake performance of 94.61% in the fourth quarter (Q4) of 2024, indicating a significant advance in performance.
This disclosure came in the NERC 2024/Q4 Report, which highlighted a 4.14 percentage point rise in energy offtake compared to the previous quarter (Q3 2024).
According to the report, five DisCos exceeded the 95% energy offtake threshold under the PCC system, including: Benin DisCo has the highest offtake (99.57%), up from 98.01% in Q3 2024. Enugu DisCo is at 96.82%, down from 98.65% in Q3 2024.
Port Harcourt DisCo reached 96.62%, up from 95.11% in Q3 2024. Ibadan DisCo has reached 96.60%, up from 94.70% in Q3 2024, and Ikeja DisCo stands at 96.15%, up from 89.56% in Q3 2024.
However, several DisCos did not meet the 95% offtake target.
Yola DisCo recorded the least performance at 76.89%.
Other poor performed DisCos included Kaduna DisCo (87.68%, up from 81.97% in Q3 2024), Abuja DisCo (91.89%, up from 86.52% in Q3 2024), and others that did not meet the concurrence approach .
The report observed that Benin, Ikeja, Port Harcourt, and Ibadan DisCos showed quarter-on-quarter improvements, while Enugu DisCo saw a decline in performance.
“At an aggregate level, the energy offtake performance of the DisCos increased by +4.14pp between 2024/Q4 and 2024/Q3,” the report states.
A recurrent pattern was also discovered in the report: “A reduction in available PCC across 2 quarters often leads to an increase in energy offtake performance, while an increase in available PCC across 2 quarters often leads to a decrease in energy offtake performance.”
This chart demonstrates how system-wide generation changes affect DisCos’ capacity and willingness to absorb their assigned energy.
NERC has implemented measures to ensure adherence, in line with the Performance Monitoring Framework Orders (NERC/2024/086 – 096) released on July 5, 2024.
These Orders mandate that all DisCos must utilize a minimum of 95% of their available PCC every quarter, and not achieving this standard will result in regulatory penalties.
“Pursuant to these provisions, the Commission has already commenced the appropriate enforcement actions against DisCos that did not meet the minimum offtake requirement for 2024/Q4,” the NERC Q4 2024 report states.
This enforcement move signifies NERC’s growing commitment to ensuring efficiency and accountability within Nigeria’s electricity distribution sector.
DisCo off-take performance continues to be a vital measure in Nigeria’s electricity sector, as it directly affects energy distribution, liquidity within the Nigerian Electricity Supply Industry (NESI), and ultimately, user contentment.
The inability of DisCos to completely utilize the available capacity not only leads to wasted energy production but also results in financial setbacks throughout the entire power value chain, from generation to transmission.
