NERC stipulates sanctions against DisCos, tells Nigerians not to pay for transformers, cables, others

Thursday, 11 July 2024 04:48

NERC stipulates sanctions against DisCos, tells Nigerians not to pay for transformers, cables, others

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NERC stipulates sanctions against DisCos, tells Nigerians not to pay for transformers, cables, others

The Nigerian Electricity Regulatory Commission (NERC) has announced stringent sanctions against electricity distribution companies (DisCos) that fail to meet performance standards, while also warning consumers not to pay for electricity distribution infrastructure such as transformers, cables, and poles.

In a recent order, NERC stated that it will reduce the administrative and operational expenditure of any DisCo that fails to offtake at least 95 percent of the total energy allocated to it for distribution. DisCos will be evaluated on seven key performance indicators, including energy off-take, revenue recovery rate, and compliance with customer service standards.

Sanctions include a downward adjustment of DisCos' administrative operational expenditure by five percent for the next quarter if they fail to meet the 95 percent off-take requirement in two out of three months in any quarter. Additionally, any instance of customer overbilling will result in a 10 percent deduction from the DisCo's annual administrative operational expenditure allowance, along with credit adjustments for the overbilled customers.

NERC's order also imposes fines for non-compliance with customer complaint resolutions, including N10,000 per day for billing issues and N1,000 per day for metering delays. Persistent non-compliance could lead to the withdrawal of key personnel responsible for these functions.

Furthermore, NERC has reminded consumers that it is the responsibility of the DisCos to provide necessary infrastructure such as transformers, cables, and poles. In a statement shared on social media, NERC emphasized that consumers should not be coerced into purchasing these materials and urged them to report any such coercion or delays by DisCos.

To facilitate the reporting of these issues, NERC has established a dedicated email and phone number: This email address is being protected from spambots. You need JavaScript enabled to view it. and 07074865354. NERC assured the public of prompt action upon receiving complaints.

This dual approach of enforcing compliance among DisCos while protecting consumers' rights aims to address widespread dissatisfaction and ensure the long-term sustainability of Nigeria's electricity distribution system.