The Nigerian Electricity Regulatory Commission (NERC) has barred the 11 Distribution Companies (DisCos) from charging residential customers above an average of N1,800 monthly until they are metered.
The order is coming amidst continued outrages on over billing by electricity customers.
In an Order 197 signed by the Chairman, Prof. James Momoh and the Commissioner, Legal, Licencing & Compliance, Dafe Akpeneye, NERC said the new order repeals the 2012 estimated billing regulation effective since last Thursday.
It said the Meter Assets Provider (MAP) was initiated to inincreasecrease the metering of consumers within three years.
“The Estimated Billing Methodology Regulation is hereby repealed and shall cease to have effect as a basis for computing the consumption of unmetered customers in NESI,” it noted.
NERC said all unmetered residential and commercial customers shall not be invoiced for the consumption of energy if they are not metered by April.
Presently, it said R2 customers cannot be billed for more than the worth of 78 kilowatt hour (kwh) of energy monthly which is about N1,800.
Residents that consume less than 50kwh will be billed at N4 per kwh and a maximum of N200 monthly.
All other customers on higher tariff classes must be metered by DisCos by 30 April 2020.
“Failing which these customers are not liable to pay any estimated bill issued by the DisCo.”
“Any customer that rejects the installation of a meter on their premises by a DisCo shall not be entitled to supply and must be disconnected,” it noted.
Meanwhile,
Babatunde Irukera, CEO, FCCPC on Tuesday said it is inappropriate for electricity distribution companies (DisCos) to focus on tariff increase as the only way to increase efficiency, while refusing to address the fundamental issues of metering and arbitrary billing.
He spoke at the Eko DisCo Public Hearing on Tariff Review held in Lekki, Lagos.
See excerpt of his speech below:
“There are three main reasons that the DisCos, including Eko, and particularly Eko, have repeatedly articulated for some of the problems in the industry.
“One, low tariff. Two, energy theft. Three, metering. And it seems to me that the very broad presentation that we have had today addresses only one, which is, low tariff.
“If you are going to promote efficiency, the only way to promote it certainly cannot be increasing tariffs… there is absolutely no question about the fact that increasing tariffs will not in itself necessarily promote efficiencies.
“And so the DisCos, including Eko, the starting point is you must invest. I am not even talking about investment in supply or distribution, you must invest in your collection.
“So long as you have fewer people paying for what most use, you will not find a cost reflective tariff. The answer cannot be burdening those few (who pay their bills) with more.
“It is the business man’s responsibility to find a way to ensure that they are paid for the services they provide. It is not other consumers responsibilities. And it is not even the government’s responsibility.
“And so in all of this presentation that doesn’t address such a low hanging fruit, as improving collections, instead increasing the burden on those who are paying, obviously leaves significant questions to answer from the consumer side.
“What about metering? There is still vast majority of bills that are paid today by estimation. 55 percent of consumers are still unmetered.