NERC Threatens Sanctions Against DisCos Over Low Power Supply

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NERC Threatens Sanctions Against DisCos Over Low Power Supply
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The Nigerian Electricity Regulatory Commission has threatened sanctions against electricity distribution companies or DisCos if they failed to take up at least 95 per cent of the total monthly energy allocated for distribution.In the commission’s Order on Performance Monitoring Framework for all the DisCos, the market operator rolled out touch sanctions against utility firms that commit infractions capable of inflicting pain on electricity consumers.

The order stipulated that failure to off-take up to 95 per cent of available nominations in any month will attract issuance of a rectification directive, such as a downward adjustment of DisCos guaranteed Admin OpEx by 5 per cent for the next quarter. “The imposition of the consequential regulatory interventions specified in this Order shall not be construed as a limitation or foreclosure of the power of the commission to impose any other enforcement sanction under the Electricity Act or any other regulatory instrument.

For non-compliance to the resolution of complaints through the NERC contact centre or headquarters after the expiration of timelines in the CPR, the DisCo would be made to pay fines within the first month -billing: ₦10,000 per day; disconnection: ₦2,000/day; interruption: ₦2,000/day; metering: ₦1,000/day; delay in connection: ₦1,000/day; Voltage: ₦1,000/day.

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