By Charles Ebi, Abuja
Nigerian Electricity Regulatory Commission, NERC, has introduced an addendum to its Order on Performance Monitoring Framework for Electricity Distribution Companies, DisCos, aimed at enhancing operational efficiency and accountability.
The Addendum 1, issued on December 23, introduces significant updates to Key Performance Indicators, KPIs, originally stipulated in the Order issued on July 5.
The revised Key Performance Indicators will take effect from the first quarter of 2025.
This was contained in a statement posted on X, formerly Twitter, yesterday.
This initiative is part of NERC’s commitment to ensure that DisCos deliver improved energy services to consumers, while maintaining high standards of accountability and customer satisfaction.
“The Order seeks to ensure compliance with KPIs. These include accountability by the Discos management, increased operational performance, improved energy delivery to customers and customer satisfaction,” the statement read.
The addendum revises three critical KPIs to address gaps in compliance and operational performance:
DisCos must now ensure they offtake at least 95% of available nominated energy for two out of three months per quarter.
Penalty for Non-Compliance: Failure to meet this target will result in a 5% reduction in the DisCo’s administrative operational expenditure for the subsequent quarter. This adjustment aims to incentivize DisCos to optimise energy delivery to customers.
Compliance with the Uniform System of Accounts has been revised from monthly to a two-month per quarter basis.
Enforcement Action for Default: Non-compliance for two months within a quarter will trigger stringent enforcement measures, including possible withdrawal of the “Fit and Proper” approval for the DisCo’s Chief Finance Officer or equivalent positions.
The timeline for resolving customer complaints via the NERC Contact Centre and NERC Headquarters has been updated. DisCos must now achieve a 75% resolution rate for all complaints within a quarter, reflecting increased focus on customer satisfaction.
To ensure seamless compliance, NERC will issue Rectification Directives for all outstanding issues related to the revised KPIs for Q3 and Q4 of 2024. The enhanced enforcement framework, as outlined in Addendum – 1, will officially take effect in Q1 2025.
NERC’s proactive approach to refining the regulatory framework demonstrates its dedication to foster transparency and efficiency in Nigeria’s electricity distribution sector. By holding DisCos to higher standards of accountability and performance, the commission aims to address long-standing challenges in energy delivery and customer service.
