The Nigerian Electricity Regulatory Commission (NERC) at the weekend vowed to deduct N10,505,286,072 from the account of 11 electricity Distribution Companies (DisCos) for not complying with the capping of estimated bills for unmetered customers.
A statement by the commission’s management issued in Abuja said, “Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.”
Recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
According to the management, a review of the Electricity Distribution Companies (“DisCos”) billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.
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NERC noted that in response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following:
“Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
“Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31st March 2024.”
NERC reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.
Tinubu signs Electricity Act
Meanwhile, President Bola Tinubu has signed the Electricity Act (Amendment) Bill 2024 into law, the News Agency of Nigeria (NAN) reports.
The bill, which was passed by both the House of Representatives and the Senate in 2023, was sponsored by Hon. Babajide Benson of Ikorodu Constituency of Lagos State.
The Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale, said that the law would address the development and environmental concerns of host communities.
He said it would also facilitate setting aside of 5 per cent of the actual annual operating expenditures of power generating companies (GENCOs) from the preceding year for the development of their respective host communities.
Ngelale added that the set aside fund would be used for the infrastructural developments of host communities of the GENCOs.
The President’s spokesperson said that the fund would be received, managed and administered by a reputable Trustee/Manager to be jointly appointed by the respective GENCOs and the host communities.
