NERC repeals estimated billing of electricity

 

• Orders DisCos to meter customers latest April 30, 2020

 

BY KAZIE UKO

The Nigerian Electricity Regulatory Commission (NERC) has repealed estimated billing of electricity for certain categories of customers.

The Commission also capped the amount to be billed on estimation for other categories of customers, by the electricity distribution companies, DisCos.

This development was communicated by the NERC in a new order, “Order on the Capping of Estimated Bills in the Nigerian Electricity Supply Industry”, published Tuesday, in Abuja.

The order signed by the Commission’s Chairman, James A. Momoh and Commissioner Legal, Licensing and Compliance, Dafe C. Akpeneye, takes effect February 20, 2020.

“This Order repeals the Nigerian Electricity Regulatory Commission (Methodology for Estimated Billing) Regulations 2012 (“Estimated Billing Methodology Regulations”) and shall take effect from 20 February 2020 and shall cease to have effect on the issuance of a new Order of the same subject matter by the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”),” NERC announced.

The Commission said after reviewing all the issues surrounding electricity supply in the country and following various public hearings, it has resolved that, “the Estimated Billing Methodology Regulation is hereby repealed and shall cease to have effect as a basis for computing the consumption of unmetered customers in NESI (Nigerian Electricity Supply Industry.”

Consequently, NERC ordered the DisCos to ensure that all customers on tariff class A1 in their franchise are properly identified and metered by 30 April 2020.

Also, all unmetered R2 and C1 customers shall not be invoiced for the consumption of energy beyond the cap stipulated on Schedule 1 of the new Order.

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“The energy cap prescribed by the Commission shall only apply to R2 and C1 customers. All other customers on higher tariff charges must be metered by DisCos no later than 30 April 2020, failing which these customers are not liable to pay any estimated bill issued by the DisCo.

“Any customer on such higher tariff classes not metered beyond 30 April 2020 shall remain connected to supply without further payment to the DisCo, until a meter is installed on the premises under the framework of MAP Regulations or any other financing arrangement approved b y the Commission.

“Customers whose current estimated bills are lower than the prescribed energy cap shall remain so without any upward adjustment until a meter is installed by the DisCo under the MAP Regulations or any other initiative approved by the Commission.

“Any customer that rejects the installation of a meter on their premises by a DisCo shall not be entitled to supply and must be disconnected by the DisCo, and shall only be reconnected to the network with the installation of a meter,” the Commission ordered among other resolutions.

Find below NERC formula for computing electricity consumption for certain categories of customers, in the new Order: