Energy and Power
NERC warns DisCos to stop imposing estimated billing on customers
Nigeria’s regulatory agency, the Nigerian Electricity Regulatory Commission (NERC) has warned Electricity Distribution Companies (DisCos) to stop imposing estimated billing on customers.
NERC reaffirmed the Commission’s directive to DisCos that it was their responsibility to replace faulty electrical meters or outdated ones free of charge.
The agency was reacting to public outcries by customers of DisCos regarding what they perceive as a strategy by the DisCos to compel acceptance of estimated billing by covertly restricting their access to recharge energy credits.
Reacting in a statement on Monday, NERC indicated that it had received reports of DisCos instructing customers to apply for and pay for replacing damaged and outdated meters within their service areas.
The regulator stressed that such directives from the DisCos violate the Commission’s Order No. NERC/246/2021 concerning the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry (NESI).
The statement reads: “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.
Customers are encouraged to report any instances of non-compliance by a DisCo through the appropriate channels provided by NERC.
“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.”
NERC has stated categorically that no customer equipped with a meter should be compelled to switch to estimated billing.
The regulator clarified that if a customer’s meter is deemed obsolete or faulty by any Distribution Company (DisCo), that DisCo must replace the meter at no cost as long as the customer did not cause the issue.
NERC reaffirmed its dedication to safeguarding the interests and rights of customers by ensuring adherence to established regulatory standards and imposing penalties for any non-compliance by its licensees.
Recently, some consumers of Eko Electricity Distribution Company (EKEDC) and Ikeja Electric (IE) expressed their frustration over their inability to load electricity tokens onto their meters.
This predicament has left many consumers in a difficult situation.
For instance, Cecilia Nwadie, a resident of Lawanson, Surulere, under EKEDC, shared that her attempts to load her energy token over the past two days have been unsuccessful.
As a result, she and her family have been without a power supply.
“I tried to load my meter, but it failed. All that the meter indicated to me was “CALL”. When I eventually called EKEDC customer care, I was told that the meter had expired and that I should apply for another meter,” she told The Nation.
Some reported success in loading their tokens after multiple attempts. In contrast, others claimed they were unable to access the website provided by the utility for updates before the November 14 deadline.
A dissatisfied IE customer, who identified himself as Ladi Ogundele, accused the utility of intentionally placing consumers on estimated billing to take advantage of them.
He noted that IE’s insistence on requiring payment for meter replacement, despite a contrary directive from the Federal Competition and Consumer Protection Commission (FCCPC) and NERC, suggests that the utility’s strategy is to exploit its customers.
The Distribution Company has remained silent since the regulators intervened to enforce compliance with the established rules.
“I think this is an acid test for both FCCPC and NERC. If they allow the DisCos to get away with this apparent disregard for customers, then both agencies of government would have failed,” Ogundele said.
President Bola Tinubu has approved the appointment of executive and non-executive members for the newly established Nigerian Independent System Operator, NISO.
In a statement issued on Wednesday by the Special Adviser to the President on Informaion and Strategy, Bayo Onanuga in Abuja, listed the names of members as, Adesegun Olugbade as the board chairman, while Abdu Mohammed Bello was appointed the Managing Director.
Four other Executive Directors are Engineer Nafisatu Asabe Ali for Systems Operation, Engineer Shehu Abba-Aliyu for Systems Planning, Dr. Edmund Eje for Market Operations, and Mr. Babajide Ibironke for Finance and Corporate Services.
According to the statement, the Non-Executive Directors include Lamu Audu, representing Generation; Folake Soetan for Distribution; Tajudeen Giwa-Osagie as Market Expert; Sule Ahmed Abdulaziz for Transmission, and Alhaji Mahmuda Mamman, Permanent Secretary at the Federal Ministry of Power.
“The National Council on Privatisation (NCP) will finalise the recruitment process.
“These appointments align with the Electricity Act of 2023. They followed a memorandum from Vice President Kashim Shettima and a rigorous selection process conducted by the Independent Board Nomination Committee (IBNC) in collaboration with Phillips Consulting Limited.
“The creation of NISO fulfils a key mandate of the Electricity Act (2023), which requires the unbundling of the Transmission Company of Nigeria (TCN) into a Transmission System Provider (TSP) and an Independent System Operator (ISO).
“The Nigerian Electricity Regulatory Commission (NERC) officially established NISO on April 30, 2024. The Bureau of Public Enterprises (BPE) and the Ministry of Finance Incorporated (MOFI) are its subscribers, each holding equal equity shares.”
The Energy Commission of Nigeria (ECN), through its Energy Management Systems project, has trained stakeholders in various Ministries and Agencies in Nigeria to enhance industrial energy performance and promote resource-efficient, cleaner production.
The training took place in Abuja on Monday.
The ECN said the initiative is implemented through programmatic approaches and the promotion of innovation in clean technology solutions.
Speaking during the event, the ECN Director General, Dr. Mustapha Abdullahi, stated that the aim of the training was to promote innovation in clean technology solutions under the NIG IEE/RECP Project, which is supported by the Global Environment Facility (GEF) and the United Nations Industrial Development Organization (UNIDO).
According to him, the project is also targeted at strengthening national industrial energy efficiency (IEE) policies and regulatory frameworks to encourage the adoption of UNIDO’s Energy Management Systems Standards (EnMS/ISO 50001) in Nigeria.
The Director General said, “With the increase in energy prices and the environmental impacts of energy consumption, there is a growing need for balanced energy usage and effective energy management to minimize energy wastage. It is therefore commendable that this timely training on Energy Management Systems (EnMS) is organized to present a systematic framework for establishing policies, processes, procedures, and specific energy-related tasks aimed at meeting an organization’s energy-saving targets.”
Also, the Program Coordinator for Environment and Energy at the United Nations Industrial Development Organization (UNIDO) for Nigeria and ECOWAS, Mr. Oluyomi Banjo, commended the ECN for organizing the training.
He said, “Globally, industries account for one-third of total energy consumption and almost 40% of worldwide COz emissions. The need to reduce energy consumption, environmental degradation, and resource depletion by industries in emerging economies is particularly urgent. Since 1990, global growth in industrial production has been dominated by emerging economies like India and China, which together accounted for over 80% of increased industrial production during this period.
“This project was collectively developed and submitted by UNIDO on behalf of Nigeria in 2017 under the Global Environment Facility (GEF) 6 programming cycle. It was approved for full project development in 2017 and subsequently for full project implementation in 2020. It may interest you to know that, for the first time at UNIDO, we are integrating industrial energy efficiency with resource efficiency and cleaner production in a single project. In South Africa, UNIDO’s project on Industrial Energy Efficiency recently received the Best Project of the Year award from the Southern Africa Energy Efficiency Confederation. We look forward to replicating such achievements in Nigeria.”
“The outcome of this project is targeted at industries, aiming to develop an expert base in Nigeria that could also be exported to other countries in Africa and beyond.”
The Rural Electricity Agency (REA), in partnership with the Adamawa State Government, is set to convene the REA – Adamawa State Strategic Roundtable theme “Empowering Adamawa: Unlocking Private Sector Opportunities in Distributed Renewable Energy”, scheduled for the 3rd of March, 2025 at the Transcorp Hilton, Abuja. The Agency invites frontline stakeholders in the clean energy ecosystem, including private sector players and development finance institutions to this strategic, solution-focused Roundtable.
In line with the Agency’s ongoing State-by-State initiative designed to exploit the tenets of the 2023 Electricity Act, passed into Law by His Excellency, President Bola Ahmed Tinubu, GCFR, the Agency has sustained its drive to deliver on the objectives of the futuristic Act, while strengthening the National Electrification and Strategy Implementation Plan (NESIP).
Leaning on the strategic efforts of the Honourable Minister of Power, Chief Adebayo Adelabu, the REA State-by-State Strategic Roundtables continue to serve as a veritable tool and a meeting point to facilitate impactful partnerships between active stakeholders in the energy sector while exploring opportunities for the growth of the state electricity markets.
Having convened five Roundtables with five State Governments, the Agency is now working in lockstep with the Adamawa State Government, at the behest of His Excellency, Governor Ahmadu Umaru Finitri, and the Managing Director of the REA, Abba Abubakar Aliyu, to facilitate structured, data-driven commitments for people-centred infrastructural development through innovation and sustainability in Adamawa State’s electricity market.
The State Government, under the leadership of Governor Ahmadu Umaru Fintiri, has advanced efforts towards strengthening its electricity market, including the planned establishment of Independent Power Plants across the state and the set-up of the Adamawa State Electricity Commission tasked with regulating the generation, transmission, and distribution of electricity in the State.
The 2023 Electricity Act, having aided the decentralization of the nation’s electricity sector has given State Governments the regulatory freedom over their respective electricity market.
Leaning on the mandate of the REA as well as the Agency’s technical and strategic expertise, the REA – Adamawa State Strategic Roundtable will serve as an opportunity to exploit the tenets of the NESIP; strengthening PPPs for data-driven clean energy projects in Adamawa state; supporting the State’s efforts on improved electricity distribution and renewable energy integration; exploring investment opportunities in Adamawa State Electricity market and exploring technology options for improved, sustainable energy access in the State.
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