Power Plants Used 86% of Available Capacity in August as Electricity Sector Faces Revenue Gaps
By GLEBM News Desk
Nigeria’s grid-connected power plants operated at an average of 86 per cent of their available capacity in August, according to the latest operational data from the Nigerian Electricity Regulatory Commission.
The plants had an average available capacity of 4,758 megawatts during the month and generated an average of 4,102 megawatts per hour.
The figures indicate that a significant proportion of available generation capacity was being utilised, although the amount of electricity reaching consumers remains influenced by transmission and distribution constraints.
The electricity market continues to face financial challenges further down the value chain.
Separate NERC data showed that distribution companies billed customers ₦250.79 billion for electricity in July but collected ₦205.53 billion.
The figures illustrate the difference between electricity supplied and the revenue ultimately recovered from customers.
For electricity companies, revenue collection is critical because funds generated within the sector are required to support power purchases, network maintenance and investment in infrastructure.
Persistent financial gaps can therefore limit the ability of operators to improve reliability.
The power sector’s performance is also important for Nigerian businesses because companies continue to depend on electricity for manufacturing, telecommunications, retail, services and other economic activities.
Where public electricity supply is unreliable, businesses frequently turn to alternative sources of power, increasing operating costs.
The latest generation figures suggest that available generating capacity is being used at relatively high levels, but the wider challenge remains ensuring that electricity generated is transmitted and distributed efficiently and paid for within the market.
Improving collection efficiency, reducing technical and commercial losses and strengthening infrastructure will therefore remain important to the sector’s financial sustainability.
For manufacturers and small businesses, improvements in electricity reliability could reduce dependence on diesel and other expensive backup power sources.
The data consequently underline the distinction between generation capacity and the amount of reliable electricity that ultimately reaches consumers.
