NERC orders DisCos to Refund Customers
The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity Distribution Companies (DisCos) to reimburse customers who have paid for acquisition of meters under the Meter Assets Provider (MAP) scheme.
The order was given by the commission in a document dated March 20, 2023, and signed by NERC Chairman, Sanusi Garba, and Commissioner (Legal, Licensing & Compliance), Dafe Akpeneye.
According to the document, which was released on September 18, 2023, the order took effect April 1, 2023.
The electricity regulator noted that the directive was in compliance with the national mass metering regulations 2021.
It would be recalled that NERC recently reviewed upward the prices of the single-phase and three-phase meters. A single-phase meter has risen from N58,661.6 to N81,975.16, while a three-phase meter rose N109,684.36 to N143,836.10, respectively.
NERC stated: “The Meter Asset Provider and National Mass Metering Regulations, 2021 (the Regulations) Section 8(f) provides that Distribution Licensees are obligated to reimburse customers who pay for meters under the MAP framework through equal installments of energy credits, at the time of vending, with the cost of the meter amortised over a maximum period of 36 months.
“Section 24(1) (b) of the Regulations provides that where a Customer elects to make upfront payment for meters under these regulations, the cost of the meter shall be refunded through energy credits by the distribution licensee.
“The reimbursement schedules shall be as approved by the commission, having regard to an evaluation of the financial standing of the distribution licensee. This provision also applies to upfront payment made by customers upon commencement of the MAP framework in 2018.
“The Commission conducted an evaluation of the financial standing of the DISCOs which resulted in a review of the hitherto 36-months reimbursement period.”
It explained that the order aligned the amortizations period for reimbursement with the 10 years average useful life of electronic meters.
“It also aligned the amortisation period of the cost of MAP meters with the repayment of the concessionary tenor of other financing sources for metering and recognise meters installed under the MAP framework in the Regulatory Asset Base (RAB) of DISCOs,” NERC said.
The regulator further stated that where a customer does not vend in a given month or months, the DisCos shall at the point of the next vending, refund the accumulated energy credits due to the customers for the period not vended.
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“Where a postpaid customer purchased a meter under the MAP framework, the reimbursement by the DISCO shall be in the form of a rebate on customers.
“The DISCOs have, therefore, been advised to file monthly reports with NERC containing a breakdown of the total monetary value of refunds to customers through energy credit in accordance with the Commission’s prescribed template.
“The Order further emphasised that the whole meter installed under the MAP framework shall be included in the Regulatory Asset Base, RAB, of the DISCOs by the commission at the next major or extraordinary tariff review,” it added.