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Home Business News

NERC revokes estimated billing methodology for electricity consumers

Emmanuel Abara Benson by Emmanuel Abara Benson
February 25, 2020
in Business News
power distribution NERC
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The Nigerian Electricity Regulatory Commission (NERC) said it had repealed the estimated billing methodology regulation, effective February 20th, 2020.

Following the repeal, the estimated billing methodology will cease to be used as the basis for computing the fees of unmetered electricity consumers in NESI.

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See NERC’s objectives for this move

According to a document that was released by NERC, as seen by Nairametrics, the repeal became necessary in a bid to ensure that there is parity in how unmetered R2 and C1 electricity consumers are billed, in comparison to how their metered counterparts in NESI are billed. This is also expected to make all customers happy and satisfied.

Other objectives for the repeal of the estimated billing methodology, according to NERC, include:

  • to protect unmetered R2 and C1 customers from arbitrary billings as well as ensure that they are billed at rates comparable to what their metered counterparts are charged;
  • to completely eradicate arbitrary billing, which basically entails charging electricity customers exorbitant fees that are higher their actual consumption;
  • to fast-tract the metering of unmetered R2 and C1 customers;
  • to encourage DisCos to expedite action on meter deployment under the Meter Asset Provider (MAP) Regulation of 2018; and
  • it is also aimed at reducing incidents of high collection losses in NESI.

[READ MORE: DisCos respond to NERC’s threat to revoke operators’ licenses)

Determination of energy cap

In a related development, the Nigerian Electricity Regulatory Commission has also decided that three methods should, henceforth, be used for the determination of energy caps when billing unmetered customers.

The first method entails the imposition of energy cap on the basis of projected average monthly consumption of each tariff class under the MYTO model. The second method specifies that unmetered customers should be billed on the basis of the average consumption of each tariff class within a franchise area. The last method is all about imposing an energy cap on the bill of unmetered customers within a business unit, at the average vending of customers of the same tariff class within the same area.

Here’s your need to know

The energy cap that has been prescribed by NERC only applies to R2 and C1 customers. Other customers who are on higher tariff classes are to be metered by the DisCos no later than April 30th, as earlier mentioned.

Nigerian DisCos are to ensure that all the electricity consumers on tariff class A1 are duly identified and metered latest by April 30th, 2020.

Unmetered R2 and C1 customers should not be invoiced for their energy consumption beyond the stipulated cap.

R1 customers, who do not consume more than 50kWhr of electricity in a month will continue to be charged NGN4/kWhr at a maximum of NGN200 per month.

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For the customers, whose current estimated billings are below the prescribed energy cap, no upward adjustment should be made until the relevant DisCos have installed meters for them.

Customers, who for any reason refuse to have meters installed within their properties will immediately be disconnected from electricity supply by the relevant DisCo. Reconnection to the grid will only happen provided such customers are willing to have their meters installed.

Do note that NERC may decide to amend this order at any time. More so, it can also be repealed on a later date.

You may read the full document by NERC by clicking here.


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Tags: DISCOSMYTO modelNERCNigerian Electricity Regulatory Commission
Emmanuel Abara Benson

Emmanuel Abara Benson

Emmanuel Abara Benson is an experienced business reporter and editor. He currently edits articles at Nairametrics. Reach him via email on Emmanuel.abara@nairametrics.com and follow him on Twitter @Mr_Abara for his personal opinions.

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Comments 2

  1. Olanipekun omotoso Ezekiel says:
    May 30, 2021 at 10:34 pm

    I don’t really know what is going on in my area, we were billed 16,000 from November 2020 till April 2021 as estimated bills now they brought the problem filed prepaid meter that want to kill someone with rate at which it get exhausted fast even when you don’t put on anything at all. Besides that the previous estimated bills were factor into the new prepaid meter and we are being compelled to pay else one will not be able to bend. Who will help the poor masses to sort and fight this menace. I am olanipekun omotoso Ezekiel from Ibadan oyo state Nigeria.

    Reply
  2. Awhotu Akpojaro Edmond says:
    March 14, 2022 at 10:50 am

    Nice one, but the Disco here in bayelsa state are doing otherwise…their charging rate here now is becoming unbearable. They re also imposing it on the costomers to buy meters from them… Hence bayelsa state lack meters but based all their Billings on estimated bill

    Reply

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