Nigeria: NERC to Penalise Discos Over Noncompliance With Orders

1 January 2025

The Nigerian Electricity Regulatory Commission (NERC) has issued a new order that would see the sanctioning of management of DisCos if they run afoul of orders in meeting their KPIs.

An order by the regulator titled 'Addendum 1 on Performance Monitoring Framework for Distribution Companies' stated that the review seeks to ensure compliance with the Key Performance Indicators (KPIs).

"These include accountability by the DisCos' management, increased operational performance, improved energy delivery to customers, and customer satisfaction."

Penalty for failure to offtake up to 95 per cent of available nominated energy in two out of the three months per quarter attracts a downward adjustment of DisCos' administrative operational expenditure by 5% for the next quarter.

It said lack of compliance with reporting of Uniform System of A count (USoA) for two months attracts enforcement actions including withdrawal of "Fit and Proper" approval of the DisCo's Chief Finance Officer or its equivalent position.

When a DisCo fails to attain a 75% resolution rate for total complaints in any quarter within the respective timelines, would see the withdrawal of the KYL of the Head of Customer Service or the officer responsible for resolving customer complaints in the utility.

It said penalties to be charged for non resolution after expiration of timelines for billing is N10, 000/day; disconnection, N2,000/day; interruption, N2,000/day; metering, N1,000/day; delay in connection, N1,000/day and Voltage, N1,000/day

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