To avoid cases of abandoning produced powers at generation points by electricity distribution companies, popularly called Discos, the Nigerian Electricity Regulatory Commission (NERC) has ordered them to compulsorily o pick up at least 95 per cent of the energy provided for two consecutive months or face sanctions going forward in 2025.
The commission disclosed this in a new regulatory instrument cited as Addendum 1; to the Order on Performance Monitoring Framework for Distribution Companies published on its website on Tuesday, January 1, 2025.
Under the new regulation, any defaulting Disco will forfeit five per cent of its administrative operational expenditure for the following quarter.
This measure is part of NERC’s broader initiative to enhance accountability and improve the overall management and performance of the Discos, ensuring more efficient distribution of electricity across the country.
It also directed that failure to meet two months’ compliance targets will attract enforcement actions, including withdrawal of “fit and proper” approval of the Disco’s Chief Finance Officer.
“Fit and proper” approval is a process to determine if a person or entity is suitable for a role or function.
The document stated that the directive is based on the order issued on the Performance Monitoring Framework for electricity distribution companies on July 5, 2024, which became effective on December 23, 2024.
The Order seeks to ensure compliance with the Key Performance Indicators.
These include accountability by the Discos’ management, increased operational performance, improved energy delivery to customers, and customer satisfaction.
Section 12(c) of the Orders on Performing Monitoring Framework July 2024, Orders; NERC/2024/086/096, states that “the commission may issue updated targets, attainment trajectories and review periodicity for any of the KPIs, having regard to the evolution of the wider NESI and overarching policy environment.”
The document read in part, “Following the issuance of an Order on Performance Monitoring Framework for Electricity Distribution Companies on July 5, 2924, the Nigerian Electricity Regulatory Commission has issued an Addendum 1 to this Order, effective December 23, 2024.
“The Order seeks to ensure compliance with the Key Performance Indicators. These include accountability by the Discos’ management, increased operational performance, improved energy delivery to customers, and customer satisfaction.
Efforts to reach out to Discos for comments failed at press time.
