NERC warns Discos not to disconnect customers over outstanding bills

Mon, Jan 27, 2020
By publisher
3 MIN READ

Business

THE Nigerian Electricity Regulatory Commission, NERC, has warned electricity distribution companies, Discos, to desist from extorting customers.

The commission also urged customers to report any Disco that has engaged in the practice of forcing them to supply materials and/or installation as a precondition for providing or restoring electricity supply.

The commission in a press statement signed by Usman Abba-Arabi, its general manager, Public Affairs, said: “Our attention has been drawn to the ongoing practice of some electricity distribution companies forcing customers to invest in the replacement of distribution infrastructure such as transformers, cables, etc as a condition for the restoration of electricity supply.

“The commission had earlier issued a ‘Regulation for Investment in Electricity Networks’ whereby customers desirous of intervening in the restoration of the power supply may invest in the provision of materials and installation. The regulation provides that such an arrangement must always be on the basis of an executed ‘Project Agreement’ between the customers and Distribution Company in which the costs and the mechanism for recovery of the investment are mutually agreed between the parties.

“The attention of the Commission has also been drawn to the current practice of some electricity distribution companies embarking on the removal of meters from customer premises purportedly on the regulator’s directive that all meters that have been in use for more than 10 years should be phased out,” it said.

The commission said it has not issued such directive to the licensees and no metered customer should be transferred to estimate billing on the premise that meters in use for more than 10 years are dysfunctional. It noted that all licensees must henceforth adhere to the part III, selection 3.5.2 of the metering code which states that “if a metering system fault occurs, the Distributor shall provide urgent metering services to repair or replace the metering system as soon as it is practicable and in any event within two working days of the Distributor discovering that the fault exists.

“In this regard, customers are hereby requested to report any electricity distribution company that has continued with the decommissioning of meters without an immediate replacement.

“Furthermore, the attention of the NERC has been drawn to the practice of some electricity distribution companies insisting on the payment of all outstanding electricity debts as a precondition for the acquisition of electricity meters under the Meter Asset Provider Regulation.

“The Commission is committed to expediting a closure of the metering gap in the Nigerian Electricity Supply Industry thus eliminating the current unwarranted practice of “estimated billing”. In response to customer complaints about the issuance of estimated electricity bills and pending the installation of the estimated over 5m units of meters, the Commission shall soon prescribe a cap representing the maximum amount that a DisCo may charge an unmetered customer.

“In pursuit of realizing the main objective of the Meter Asset Provider Regulations, the Commission hereby requests customers denied the opportunity of acquiring meters under the new regulatory framework on account of outstanding estimated bills should contact the Commission by sending an email with full details of the circumstances.”

– Jan. 27, 2020 @ 08:15 GMT |

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