The Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to distribution companies (DisCos) regarding inadequate power distribution. In a directive aimed at monitoring DisCos’ performance, NERC stated that failing to secure at least 95% of allocated monthly energy for distribution will result in penalties.
NERC’s directive mandates that any DisCo failing to meet the 95% energy distribution threshold will face a reduction of 5% in their guaranteed administrative and operational spending for the upcoming quarter. This measure underscores NERC’s commitment to ensuring adherence to performance metrics critical for improving service delivery and consumer satisfaction.
The commission outlined seven key performance metrics for evaluation, including energy consumption rates, revenue recovery, adherence to accounting standards, compliance with feeder streaming rules, and customer service standards. Non-compliance with these metrics not only affects consumer satisfaction but also jeopardizes the financial stability of utilities.
NERC emphasized that its regulatory interventions are aimed at addressing consumer complaints promptly and effectively. Penalties for non-compliance range from daily fines for billing errors and service interruptions to potential withdrawal of key personnel responsibilities within the DisCos.
In conclusion, NERC affirmed its commitment to enforcing these measures without prejudice to existing contractual obligations, aiming to enhance operational efficiency and accountability within the Nigerian Electricity Supply Industry (NESI).