NERC Issues Fresh Instructions to DisCos on New Electricity Tariffs

NERC Issues Fresh Instructions to DisCos on New Electricity Tariffs

  • NERC has ordered DisCos to open a portal on their websites that allows all customers to check their current Bands
  • The electricity regulatory agency emphasized that all DisCos must offer maximum clarity to all impacted customers
  • It also stressed that all DisCos must promptly publish the schedule of approved Band A feeders affected by the rate review on their websites

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

New guidelines have been issued by the Nigerian Electricity Regulatory Commission (NERC) to the electricity distribution companies (DisCos) regarding the execution of the April 2024 Multi-Year Tariff Order.

The statement, signed by Abba Terab, NERC’s Deputy General Manager of Market Competition and Rates, on Saturday, encompasses these directives.

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NERC directs DisCos to launch band status portals
NERC directed that all DisCos must promptly publish the schedule of approved Band A feeders affected by the rate review on their websites.
Source: UGC

In a preceding announcement, NERC mandated the prompt escalation of electricity tariffs, effective Wednesday, April 3, for customers categorized under Band A.

Band check portal

In a statement issued on Saturday, Mr. Terab emphasized that the commission has instructed all DisCos to offer maximum clarity to all impacted customers.

He highlighted that DisCos are mandated to maintain only the newly approved Band A feeders listed in their April 2024 supplementary orders as Band A for vending to prepaid customers and billing for postpaid customers within their networks.

Additionally, he stressed that all DisCos must promptly publish the schedule of approved Band A feeders affected by the rate review on their websites.

He said:

“All DisCos shall set up a portal by 10th April 2024 on their website that allows all customers to check their current Bands by entering their meter or account numbers.

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“All customers wrongly billed at the new rate should be refunded through energy tokens no later than Thursday, 11th April, 2024, and file evidence of compliance with the commission by 12th April 2024."

He further stated that the commission will oversee adherence to the aforementioned requirements and will remain committed to offering assistance to all stakeholders as necessary.

It would be recalled that in January 2024, FG had given approval to NERC to carry out an upward review of electricity tariffs.

Expressing his surprise at the high billing rate, Tunde Fadiji, a resident in the Oshodi area of Lagos State, said that there are elements of extortion on the part of the DisCos.

He told Legit.ng that he was shocked when he could not get enough units even after spending his usual N20,000.

He said:

"I usually spend about 20,000 on electricity units for each month and get about 400kwh.

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"I was surprised when I recharged yesterday and was only able to way less than expected even though I'm on Band B where we don't get as much as 16 hours of daily power supply.
"I'm glad NERC has been notified of this unfair extortion and I look forward to being reimbursed."

NERC slaps Abuja DisCo with N200m fine

In related news, Legit.ng reported that NERC imposed a penalty of N200 million on Abuja Electricity Distribution Plc (AEDC) for disregarding its tariff regulations.

This sanction follows the Supplementary Order to the Multi-Year Tariff Order for 2024, issued on April 3, 2024, which highlighted AEDC's failure to comply.

According to NERC, it has been uncovered that AEDC incorrectly implemented an authorized tariff increase across all customer categories, disregarding the specific instruction that only customers in Band A were to be affected by the rate adjustment.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.

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