CEO News ; NERC Issues Service Delivery Commitments To DISCOs

NERC issues service delivery commitments to DISCOs

© NERC issues service delivery commitments to DISCOs
Font size:

The Nigerian Electricity Regulatory Commission, NERC, has issued service delivery commitments to DISCOs for transparency and efficiency of service delivery.

NERC said that Discos should all publish the contact numbers of the service rapid response team for each customer cluster/business unit on its website and circulate the same to the customers via bulk SMS, commencing with Band A clusters not later than  noon, Friday 5th April 2024.

The regulator stated that Discos are obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Band A feeder not later than 09:00 am of the next day.

According to the regulator, where the Disco fails to deliver on the committed level of service on a Band A feeder for consecutive two days, the Disco shall on the next day by 10.00 am publish on its website an explanation of the reasons for the failure and update the affected customers on the timeline for restoration of service to the committed service level.

NERC warned that where the Disco fails to meet the committed service level to a Band A feeder for seven (7) consecutive days, the feeder shall be automatically downgraded to the recorded level of supply in accordance with applicable framework.

“If you are in Band A and your Disco does not meet above service commitment, report as soon as possible to NERC and Disco,” the NERC said. 

The NERC gave the following reasons for the price change it recently announced:

“The sharp rise in foreign exchange rates (since May 2023), inflation and escalation of gas prices, have significantly impacted the overall cost of electricity production and distribution.

“Without a review of tariffs; the 2024 subsidy for the electricity sector is projected to reach N2.9 trillion, which is over 10% of the federal budget for 2024 

“The review is focused on Band A primarily because today they represent a disproportionately high share of energy consumed relative to their share of the customer population.

“As at 2023, Band A customers accounts for 15% customer population, they consume no less than 40% of total energy delivered by DisCos (in some cases, they account for up to 60% of total consumption).

“Band A feeders are the more affluent areas of their respective franchise areas e.g. Lagos – Ikoyi, Ikeja GRA, Magodo; FCT – Maitama, Asokoro, Wuse.

“By focusing the review on the relatively more affluent, the FGN is able to refocus its subsidy intervention to the vulnerable customers – representing more than 85% of total customer population.

“This tariff design is intentionally designed to be pro-poor, with no change to majority of Nigerians.”



For faster login or register use your social account.

Connect with Facebook