DisCos: NERC Approves Disconnection Of Electricity Debtors After 12 Days

Electricity Distribution Companies, (DisCos), have been empowered by the Nigerian Electricity Regulatory Commission, (NERC), to disconnect customers who fail to pay electricity bills after 12 working days.

NERC in its “Customer Protection Regulations 2023” released at the weekend, however, said DisCos cannot bill a customer for periods in which the customer is disconnected.

It stated that DisCos must give a notice of disconnection to customers stating date, time and reason for disconnection.

According to the Commission, “The following conditions must be fulfilled before Distribution Companies can exercise their rights to disconnect customers for failure to pay their bills by the specified payment date-

“The payment date must be clearly stated on the bill.

“The payment date must be at least 10 days from the date of the delivery of the bill to the customer. Bills may be delivered physically to the customer’s premises or by some other electronic means, including text messages or electronic mail, as agreed with the customer.

“The period between the payment date and date of scheduled disconnection for nonpayment is not less than two working days after the payment date.

“The Distribution Company must verify from its records that payment has not been made by the customer”, it added.

NERC also authorised DisCos to disconnect a customer without notice if the customer is illegally connected to the network, the disconnection is dangerous to the network, or where the customer fails to grant access to have the meter reading taken.

LEADERSHIP reports that the Nigerian electricity supply industry (NESI) is currently grappling with a severe debt burden which has posed  serious challenge to the survival of the industry.

The situation is further compounded by massive tariff shortfall by electricity consumers’ heavy indebtedness to the DisCos.

Data from  NERC indicated that  customers’ owed DisCos about N95.8 billion.

The commission said DisCos  average bills collection efficiency  was 67.36 per cent in Q1 2022.

According to the commission   revenue earned during the period was N199.90 billion out of N295.69 billion billed to customers.

DisCos have estimated commercial losses of 47.88 per cent comprising aggregate technical and commercial losses (23.44 per cent) and collection losses (30.66 per cent).

Chairman, Electricity Consumers Association of Nigeria, Chijioke James said while he does not encourage customers to owe for electricity consumed, providing meters to customers remains the most viable way.

“When customers have prepaid meters, it means the issue of disconnection would not arise as consumers are able to monitor their consumption. Supply is automatically cut off when you exhaust your units and it is restored when you recharge. No hassles.

“Estimated billing method is arbitrary and should be discontinued immediately. Every customer deserves to be metered and that is what we have been calling for”, he told Vanguard.