1. How Power Reaches Households1

2. Customer payments to Discos
NESI Revenue Flow Protocol
DisCos are Collection Agents for the Entire Industry
Customer payments to Discos
Discos
Regulator, Bulk trader, Market Operator etc.
Transmission Company
Power Generation
Gas Suppliers N
NBET
11%
57%
24% 4%
100%
CBN

3. Avg. Billing vs Avg. Collection – Quarter 4, 2015
ABUJA
BENIN
EKO
ENUGU
IBADAN
IKEJA PH
YOLA
KANO
JOS
KADUNA
57%
66%
71%
63%
65%
70%
51%
50%
49%
Rates of Collection

4. MDA Debts as of December 2015
S/N
NAME OF DISCOS
AMOUNT (IN BILLIONS) 1
IKEJA
5,786 2
BENIN
4,106 3 PH
2,750 4
KADUNA
8,105 5
IBADAN
5,887 6
YOLA
2,003 7
ENUGU
6,772 8
ABUJA
8,659 9
JOS
5,311 10
KANO
1,194 11
EKO
8,336
TOTAL
58,909
MDA Debts as of December 2015

5. Average Residential Tariffs - 2016

6. Historically Tariffs in Nigeria Have Been Below Cost-reflective Levels

7. The 10-Year Tariff Sculpt for Industry

8. Retail tariffs support the whole industry…
Retail tariffs support the whole industry…. Cost-reflective tariff in 2016: 57% Gencos 24% Discos 15% TCN and others 4% CBN repayment Income from tariffs expected to cover 84% of these costs – gap due to sculpting /16 shortfall will not begin to be recovered until sculpted tariff above cost-reflective

9. A portion of the increase in the energy tariffs is due to the complete removal of fixed charges The blue area indicates the increase in the energy tariff due to the removal of fixed charges.

10. Metered Vs Unmetered Customers Metering CAPEX to be Funded

11. ATC&C Loss Reductions – the Good News
ATC&C Loss Reductions – the Good News!! DisCos’ ATC&C loss reductions, in combination with forecasted improvements in power supply, will result in a reduction of the tariff over time.

12. Industry Average Collection Losses Evolution