Power: GenCos invoices fall N80.56bn on weak demand

The total invoice issued by power generation companies fell by N80.56bn in the third quarter of 2025, following a reduction in energy offtake by electricity distribution companies, according to industry data.

Figures released by the Nigerian Electricity Regulatory Commission in its Q3 2025 report indicate that GenCos billed N782.46bn in 2025/Q3, down from N863.02bn in 2025/Q2.

This was because the DisCos reduced their energy offtake by 6.08 per cent and also contributed to a reduction in the Federal Government’s subsidy obligation, which fell to N458.75bn from N514.35bn over the same period.

The report noted that the current open-ended subsidy regime exposes the government to indeterminate subsidy obligations due to volumetric risks and variations in generation costs arising from changes in the supply mix, with higher thermal generation typically increasing costs.

“6.08 per cent reduction in energy offtake by DisCos between 2025/Q3 and 2025/Q2 was the key driver for the reduction in the total GenCo invoice (N782.46bn vs. N863.02bn) and subsidy (N458.75bn vs. N514.35bn) across the period. The current open-ended subsidy regime leaves the FGN exposed to indeterminate subsidy obligation because of volumetric risk; generation cost variation arising from changes in supply mix (more thermal = higher generation cost),” NERC said.

It added that the monthly subsidy obligations during the quarter were N163.7bn in July, N153.32bn in August, and N141.72bn in September.