NERC Reels Out New Sanctions For DisCos

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The Nigerian Electricity Regulatory Commission (NERC) announced new sanctions for Distribution Companies (DisCos) failing to meet specific contractual obligations with customers and regulators.

These measures, outlined in the Order on Performance Monitoring Framework, will assess DisCos on seven key performance issues: energy off-take relative to contracted capacity, revenue recovery rate, compliance with reporting standards, API feeder streaming, capping of estimated bills, forum decision implementation, and service standards for complaint resolution.

Signed by NERC Chairman Sanusi Garbo and Commissioner Dafe C. Akpeneye, the order aims to hold DisCo management accountable and improve operational performance to enhance energy delivery.

Failure to off-take 95% of available nominations monthly will trigger a rectification directive, and repeated failures within a quarter will result in a 5% reduction in Admin OpEx for the next quarter.

Additionally, overbilling customers will result in a 10% deduction of the overbilled amount from the DisCo’s annual Admin OpEx during the next tariff review and credit adjustments for affected customers.


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