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NERC asks DisCos to disconnect defaulting MDAs

NERC asks DisCos to disconnect defaulting MDAs
October 10
12:11 2019
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The Nigerian Electricity Regulatory Commission (NERC) has asked electricity distribution companies (DisCos) to disconnect government ministries, departments and agencies (MDAs) who are defaulting in the payment of energy bills.

In a notice signed by Dafe Akpeneye, commissioner for legal, licensing and compliance, on Tuesday, the regulator said the responsibility of revenue collection from all customers including MDAs of states and federal governments lies with the DisCos.

The commission also asked the power firms to install prepaid meters in all the MDAs within a period of 60 days.

“The Order reiterated that the responsibility and initiative for revenue collections from all customers including Ministries, Departments and Agencies (“MDAs”) of States and Federal Government rests with DisCos,” the notice read.

“Accordingly, this Order made it mandatory for all DisCos to meter all MDAs with appropriate meters of their choice within 60 days from the effective date of this Order.

“All DisCos reserve the right to disconnect any MDAs defaulting in the payment for electricity in line with the Regulation on Connection and Disconnection Procedures for electricity services.”

According to the commission, there was a decrease in the total revenue collected by 11 DisCos.

“The total revenue collected by eleven (11) DisCos from customers in the first quarter of 2019 stood at ₦116.9 billion out of the total billing of ₦182.8 billion,” it said.

“Despite the increase in the amount of energy received by DisCos and a higher billing efficiency recorded relative to the preceding quarter, there is a 0.5% decrease in the total revenue collected by DisCos in the first quarter of 2019 when compared to ₦117.5billion collected in the last quarter of 2018.”

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