Estimated Billing Of Electricity Users Is Now Abolished In Nigeria
By Onyekachi Umah, Esq., LLM. ACIArb(UK)
To stabilize the electricity industry and save electricity customers from the often outrageous estimated bills, on 20 February 2020, NERC abolished estimated billing and bills in Nigeria with effect from same 20 February 2020. By “ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020” issued by NERC, signed on 20 February 2020, no person in Nigeria is allowed to pay estimated electricity bill as from 20 February 2020. Estimated billing system has been repealed and abolished in Nigeria. The said Order clearly repealed NERC’s (Methodology for Estimated Billing) Regulations 2012.
The said Order from NERC applies and binds all the electricity Distribution Companies in Nigeria. The distribution companies in Nigeria, are; Abuja Electricity Distribution Plc (AEDC), Benin Electricity Distribution Plc (BEDC), Eko Electricity Distribution Plc (EKEDC), Enugu Electricity Distribution Plc (EEDC), Ibadan Electricity Distribution Plc (IBEDC), Ikeja Electricity Distribution Company (IKEDC), Jos Electricity Distribution Plc (JEDC), Kaduna Electricity Distribution Plc (KNEDC), Kano Electricity Distribution Plc (KEDC), Port Harcourt Electricity Distribution Plc (PHEDC) and Yola Electricity Distribution Company Plc (YEDC).
Furthermore, the said order of NERC, mandates DISCOs to identify and meter all electricity users before 30 April 2020. It also set the maximum fee that any unmetered user can be charged in any part of Nigeria, monthly. And, any user that already pays electricity bill that is lower than the maximum rate stated by NERC is also allowed to continue paying such low bill. By the said recent order of NERC, the maximum monthly electricity bill any unmetered user in Nigeria can pay is #200.00 for Residential Customers of Class 1 (lifeline, R1). The Order states varying rates maximum bills depending on location for Residential Customers of Class 2 (R2- single or 3 phase).
Recently, NERC’s order (NERC/2024/004-014) has mandated DisCos to issue to over-charged unmetered customers a Credit Adjustment, for the period from January to September 2023 by the March 2024 billing cycle. Also, the DISCOs are to publish the list of the beneficiaries of the Credit Adjustment in two national dailies and on websites of the DISCOs on or before 31 March 2024.
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