Nigeria: NERC Hints Of Compensation For Electricity Consumers

The Nigerian Electricity Regulatory Commission (NERC) will effective July start enforcing compensation to electricity consumers who are under-supplied of power to their homes and businesses by the DISCOs.

This follows several complaints by energy consumers that the Service-Based Tariff (SBT), which has led to a huge increase in electricity bills paid by customers, only places obligations on them without appropriate sanctions for Distribution Companies (DISCOs) that under-supply.

This was made known by the Deputy General Manager, Markets Competition and Rates, NERC, Mr Abba Terab, at the 58th Session of the Power Dialogue organised by the Electricity Hub, who said that for now, compensation will be based on a 60-day cycle.

Under the policy, customers are to pay for electricity in correlation with the level of service they get and how long they receive power daily. Therefore, it will be based on a minimum average hour of power supply and other metrics.

Consumers are divided into five bands, A–E, where band A is for customers who get 20 hours of power and above daily; B is for customers who get power for 16 hours daily and C covers customers who enjoy power for 12 hours and above a day.

Band D is for those that enjoy power for 8 hours and above, while band E is for customers who only get four hours and above but below 8 hours of power supply daily.

Mr Terab, in his statement, said, “If I am in band A, I should get band A service and when I am paying for band A service and I don’t get band A service, but I get band B service, I should be compensated accordingly. That’s the position of the commission and it has been made very clear to all operators within the industry.

“We believe that by the time we carry out the minor review, this will be done. When the automation of the meters is done, compensation will be on a monthly basis. If over a period of six months a customer does not get minimum service, he will get a refund on a monthly basis for the energy.”

Source: www.energynewsafrica.com