“Overbilled consumers will receive credit adjustments”: NERC imposes new rule on DisCos

• NERC has instructed that Discos would incur more fines if they violate specific contractual duties to customers and regulators
• This will have an effect on seven factors that are used to assess the performance of each DisCo
• The Head of Billing or the individual in charge of the utility's billing department may lose their KYL in cases of overbilling

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian Electricity Regulatory Commission has revealed that Discos who breach certain contractual obligations to regulators and customers would face additional penalties.

The new order sought to hold the top management of each DisCo accountable. Photo Credit: Prapat Aowsakorn
Source: Getty Images

This will impact seven issues that would be used to evaluate each DisCo's performance, according to an Order on Performance Monitoring Framework for All DisCos.

“This includes energy off-take relative to partial contracted capacity; revenue recovery rate; compliance with reporting of a uniform system of accounts; compliance with API feeder streaming; compliance with the order on capping of estimated bills; compliance with the implementation of forum decisions; and compliance with service standards for the resolution of complaints received through the NERC contact centre and NERC headquarters,” it said.

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The new order sought to hold the top management of each DisCo accountable for their compliance with reporting requirements and implementation of commission directives in line with the utility's terms and conditions.

It was signed by NERC Chairman Sanusi Garbo and Commissioner Legal, Licensing & Compliance, Dafe C. Akpeneye.

“This will Drive increased operational performance from DisCos thereby improving energy delivery to customers under their franchise area.”

The directive stated that a rectification directive would be issued if up to 95% of the eligible nominations were not off-taken in a given month.

Nonetheless, a DisCo's guaranteed administrative profit (OpEx) will be lowered by 5% for the following quarter if it is unable to off-take up to 95% of eligible nominations in two of the three months of that quarter.

Additionally, Daily Trust reported that in the event that a customer is overcharged, the DisCo will withhold 10% of the total over-billing amount for the period from its yearly administrative profit-sharing allotment during the subsequent tariff review. Overbilled consumers will also receive credit adjustments.

“If the energy overbilled is greater than 20 per cent of the allowed cap or the number of customers overbilled represent is greater than 20 per cent of unmetered customer base, the Commission may take other enforcement actions including the withdrawal of the KYL of the Head of Billing or the officer responsible for the billing function in the utility.“For non-compliance to the resolution of complaints through the NERC contact centre or headquarters after the expiration of timelines in the CPR, the DisCo would be made to pay fines within the first month -billing: N10,000 per day; disconnection: N2,000/day; interruption: N2,000/day; metering: N1,000/day; delay in connection: N1,000/day; Voltage: N1,000/day,” it said.

Tinubu laments Nigeria's poor electricity generation

Legit.ng reported that President Bola Tinubu has expressed disappointment in Nigeria's electricity generation, stating that 4.5 gigawatts is insufficient for a country of its size.

Tinubu made this statement during the inauguration of the Presidential Economic Coordination Council in Abuja, emphasizing the need for innovative solutions to the country's economic challenges.

He highlighted the importance of public-private partnerships in driving economic reforms, particularly in the energy sector.

Source: Legit.ng