TheCable

The Nigerian Electricity Regulatory Commission (NERC) has capped estimated billing issued by electricity distribution companies (DisCos) to unmetered customers.

This is contained in a directive given on Monday by the regulator to repeal the former methodology for computing estimated billing.

NERC issued a new order on the capping of estimated bills in the Nigerian electricity supply industry (NESI).

The commission said the move is to protect customers from unrealistic and arbitrary billing as the DisCos have failed to meter most of its consumers.

According to the order, the capping is for unmetered customers on single and three-phase (R2 and C1) tariff class in the 11 DisCos depending on the area, until a prepaid meter is installed.

NERC said customers whose current estimated bills are lower than the prescribed energy cap shall remain so without any upward adjustment until a meter is installed by a DisCo.

“The estimated billing methodology Regulation is hereby repealed and shall cease to have effect as a basis for computing the consumption of unmetered customers in NESI,” it said.

“The commission acknowledges that all customer classes with the exception of R2 and C1 are deemed to have been metered by DisCos or granted sufficient regulatory intervention to protect them from arbitrary billing by DisCos.

“All unmetered R2 and C1 customers shall not be invoiced for the consumption of energy beyond the cap stipulated in this order. All R1 customers, who by definition consume no more than 50kWhr of energy per month, shall continue to be billed at NGN4/kWhr and a maximum of NGN200 per month unless amended by an order of the commission.

“The energy cap prescribed by the commission shall only apply to R2 and C1 customers. All other customers on higher tariff classes must be metered by DisCos no later than 30 April 2020, failing which these customers are not liable to pay any estimated bill issued by the DisCo. Any customer on such higher tariff classes not metered beyond 30 April 2020 shall remain connected to supply without further payment to the DisCo, until a meter is installed on the premises under the framework of MAP Regulations or any other financing arrangement approved by the commission.

“Customers whose current estimated bills are lower than the prescribed energy cap shall remain so without any upward adjustment until a meter is installed by the DisCo under the MAP Regulations or any other initiative approved by the commission.”

To calculate the maximum bill a DisCo can issue monthly, the customer will have to multiply the energy cap and the approved tariff rate of his area to get the appropriate billing.

NERC, however, added that any customer who rejects the installation of a meter on his premises by a DisCo shall be disconnected, as the capping regime is to expedite metering of all customers.