In a decisive move to enhance the reliability of electricity distribution and protect consumers, the Nigerian Electricity Regulatory Commission (NERC) has announced stringent sanctions against electricity distribution companies (DisCos) that violate performance standards.
This initiative is aimed at addressing the recurrent issues faced by consumers and ensuring a more stable electricity supply.
According to the new regulations, any DisCo that fails to off-take at least 95 per cent of its allocated energy will face a reduction of 5 per cent in its administrative and operational expenditure. This measure is part of a broader performance monitoring framework outlined in NERC’s latest order.
DisCos will now be assessed on seven critical performance indicators, including:
DisCos that fail to meet these standards will face significant penalties. Specifically, failure to off-take 95 per cent of available energy in two out of three months in a quarter will trigger a 5 per cent cut in their guaranteed administrative expenditure for the subsequent quarter.
Also Read: NERC has dearth of experts, says Minister of Power Adelabu
Additionally, overbilling customers will result in a deduction of 10 per cent of the overbilled amount from the DisCo’s annual administrative budget, along with necessary credit adjustments for affected customers.
For instances of extensive overbilling, where the overbilled energy exceeds 20 per cent of the allowed cap or affects over 20 per cent of unmetered customers, NERC may enforce stricter actions, including the dismissal of the head of billing or the officer responsible for billing.
DisCos that fail to resolve complaints through the NERC contact centre or headquarters within specified timelines will face daily fines:
Prolonged non-compliance, exceeding two months, may lead to further enforcement actions, including the removal of the head of customer service or the officer in charge of resolving complaints.
NERC will continuously evaluate DisCos’ performance against the established benchmarks and enforce regulatory interventions to uphold market discipline and operational standards.
Also Read: Nigerians Will Start Witnessing Improved Electricity Supply As From July 1- NERC
The commission emphasised that these sanctions are in addition to existing obligations under the Electricity Act and other regulatory frameworks.
“The imposition of these sanctions does not limit NERC’s authority to enforce additional penalties as per the Electricity Act or other regulatory instruments,” stated NERC Chairman Sanusi Garba in the order dated July 5, 2024.
This robust regulatory approach underscores NERC’s commitment to ensuring efficient electricity distribution, enhancing customer satisfaction, and promoting the financial sustainability of the sector.
MTN Nigeria has restored its internet services following disruptions that affected parts of Lagos State.… Read More
The Nigerian government has introduced a Contactless Passport Application System (CONPAS) for Nigerians residing in… Read More
Vacancy: Manager, Operations Location: Douala, Cameroon Employment Type: Full-Time, Permanent Department: Operations Company Overview IHS… Read More
IHS Towers is one of the world's largest independent owners, operators, and developers of shared… Read More
About the company FairMoney is a pioneering mobile banking institution specializing in extending credit to… Read More
In a controversial move likely to deepen tensions between Washington and Pretoria, US President Donald… Read More