The Nigerian Electricity Regulatory Commission (NERC) has threatened to sanction electricity distribution companies (DisCos) if they fail to distribute at least 95% of their monthly energy allocations. The commission’s Order on Performance Monitoring Framework outlines stringent penalties for DisCos that fail to meet this requirement, causing hardship for electricity consumers.

According to the order, DisCos failing to off-take 95% of their allocated energy will face a 5% reduction in their administrative and operational expenditure for the subsequent quarter. NERC will evaluate DisCos on key performance indicators, including energy off-take relative to contracted capacity, revenue recovery rate, compliance with reporting standards, API feeder streaming, capping of estimated bills, implementation of forum decisions, and service standards for resolving complaints received through NERC’s contact center and headquarters.

The commission noted that non-compliance with these KPIs has led to operational failures, widespread customer dissatisfaction, and undermined market discipline. NERC’s Chairman, Sanusi Garba, emphasized that regulatory interventions are necessary to ensure DisCos meet their obligations.

For non-compliance with complaint resolutions, fines will be imposed: ₦10,000 per day for billing issues, ₦2,000 per day for disconnections and interruptions, and ₦1,000 per day for metering, connection delays, and voltage issues. Persistent non-compliance may result in the withdrawal of the Key Performance License (KYL) of responsible officers.

NERC’s order also addresses overbilling, stating that 10% of the naira value of the total overbilling will be deducted from the DisCo’s annual Admin OpEx allowance during the next tariff review, alongside credit adjustments for overbilled customers. Significant overbilling may lead to further enforcement actions, including the withdrawal of the KYL of the Head of Billing or the responsible officer.