New Deadline For Metering Of Electricity Customers In Nigeria. Daily Law Tips (Tip 536) by Onyekachi Umah, Esq., LLM. ACIArb(UK)
Nigerian Electricity Regulatory Commission (NERC) on 20 February 2020 issued a new deadline for metering of all electricity customers in Nigeria. NERC also abolished estimated billing of customers by electricity Distribution Companies (DISCOs).
Earlier in 2018, NERC in order to ensure electricity customers were metered introduced a program that allowed DISCOs to engage third parties (Meter Asset Provider) to provide meters in their coverage areas. Meter Asset Providers (MAP) were approved on 8 March 2018 to cover the meter gap in the electricity sector by metering all Nigerians within three (3) years. Note that sometime in June 2016, NERC had stipulated a deadline of 30 November 2016 for the total metering of all maximum demand customers in Nigeria but later extended the deadline to 1st March 2017.
Has NERC, the DISCOs and MAPs succeeded in metering Nigerians? Is there still a huge metering deficit in the sector? What is NERC doing to provide remedies? Has the NERC’s order to DISCOs to refund excess charges to consumers on or before 31 March 2024 and report same on newspapers been complied with? Is NERC really willing to enforce the Electricity Act 2023 and create a commercially viable market?
Unfortunately, till date, meters are still not available, although, estimated bills are forced on customers every month. There is a huge metering deficit in the sector. NERC, the DISCOs and MAPs have not succeeded in metering Nigerians. NERC complaints that DISCOs are not adhering to its orders and directives. Considering the enormous powers of NERC under the repealed Electric Power Sector Reform Act and the new Electricity Act 2023, one wonders why NERC is not able to firmly lead the sector. Recently, NERC has ordered DISCOs to make refunds to consumers for excess charges on or before end of March 2024. The DISCOs are to also publish their proof of compliance on their websites and newspapers. Will the DISCOs comply and if they don’t comply what will NERC do? Is NERC willing to do anything? Only time will provide the answers, no longer the laws.
References:
1. NERC’s ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020. A copy of the said authority from NERC can be downloaded for FREE by clicking this link; NERC+Order+on+Capping+of+Estimated+Bills+in+NESI-24022020 or by visiting the direct website of NERC via the link below: website of NERC on capping of estimated billing.
2. Iniobong Iwok, Seyi John Salau, Sikirat Shehu and Mercy Enoch, “Unmetered Electricity Consumers cry out over Estimated Billing” (Business Day, 4 February 2024) <https://businessday.ng/news/article/unmetered-electricity-consumers-cry-out-over-estimated-billing/?amp=1> accessed 27 March 2024
3. Kingsley Jeremiah, “DISCOs to Pay Consumers 10.5b Over Estimated Billing” (Guardian Newspaper, 10 February 2024) <https://guardian.ng/news/discos-to-pay-consumers-n10-5b-over-estimated-billing/> accessed 27 March 2024.
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Feel free to reach the author, ask questions or make inquiries on this topic or any other legal issues via onyekachi.umah@gmail.com or +2348037665878.
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