DisCos Risk Sanctions For FailingTo Meet Energy Offtake Targets
All the Electricity Distribution Companies known as DisCos risk a 5% reduction of their administrative operational expenditure if they fail to offtake at least 95% of available nominated energy for two out of three months per quarter.
This is contained in a newly introduced addendum Order on Performance Monitoring Framework for Electricity Distribution Companies (DisCos) issued by the
Nigerian Electricity Regulatory Commission (NERC).
The Addendum – 1, issued on December 23, 2024, introduces significant updates to the Key Performance Indicators (KPIs) originally stipulated in the Order issued on July 5, 2024.
The revised Key Performance Indicators (KPIs) will take effect from the first quarter of 2025.
“The Order seeks to ensure compliance with the Key Performance Indicators (KPIs). These include accountability by the DisCos’ management, increased operational performance, improved energy delivery to customers, and customer satisfaction,” the statement read.
“DisCos must now ensure they offtake at least 95% of available nominated energy for two out of three months per quarter.
” A 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 optimize energy delivery to customers.
“Compliance with the Uniform System of Accounts has been revised from a 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 the possible withdrawal of the “Fit and Proper” approval for the DisCo’s Chief Finance Officer or equivalent positions”, the statement added.
On the timeline for customers’ complaints resolution, the order stated: “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 an increased focus on customer satisfaction”.
DisCos Risk Sanctions For FailingTo Meet Energy Offtake Targets is first published on The Whistler Newspaper
