Seven DisCos to face NERC Sanction 




By Ikenna Omeje


The Nigerian Electricity Regulatory Commission (NERC) has issued notices of intension to sanction seven electricity Distribution Companies (DisCos) for non-compliance with the capping order for unmetered customers.

The Commission made this known via a tweet on its official Twitter account (@NERCNG) on Tuesday, it stated that the DisCos involved failed to comply with the Order 197/2020 on capping of unmetered R2 and C1 electricity customers.

The seven DisCos to be sanctioned are: Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Eko Electricity Distribution Company (EKEDC), Ikeja Electricity Distribution Company (IKEDC), Kano Electricity Distribution Company (KEDC) Kaduna Electricity Distribution Company (KEDC) and Port Harcourt Electricity Distribution Company (PHEDC).

“The Nigerian Electricity Regulatory Commission has issued notices of intension to commence enforcement action against seven electricity distribution companies over their failure to comply with the Order 197/2020 on capping of unmetered R2 and C1 electricity customers.

“The DisCos are Benin, Enugu, Eko, Ikeja, Kano, Kaduna and Port Harcourt,” the tweet read.

The NERC provides a range of customers who fall under tariff classes which the Discos bill on a monthly basis and periodically for customers with prepaid meters. The classes are divided between residential customers, commercial customers, industrial customers, government agencies, religious bodies and street lights.

The classes are further categorised into two main groups, the Maximum Demand Customers (MD) and the non Maximum Demand Customers (Non-MD). The major difference between MD and Non-MD customers is that the MD customers have their own individual transformers. For example a bank or estate with a dedicated transformer.

Unlike Non-MD customers who share transformers with communities. Non-MD customers typically pay higher fixed charges.

R2 customers are customers with consumption above 50 kilowatts while C1 customers are small scale businesses like barbing saloon.


In February 2020, NERC had in its order on the capping of estimated bills in the Nigerian electricity supply industry placed limits on estimated bills that can be issued by DisCos to unmetered customers.
It noted that it had cancelled the Estimated Billing Methodology Regulation as a basis for computing the consumption of unmetered customers by the Discos.


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