- The Nigerian federal government will allocate approximately N180.8 billion in electricity subsidies for consumers in Bands ‘B’ to ‘E’, with tariffs frozen since December 2022.
- NERC has imposed fines totalling N8.3 billion on the 11 Discos for overbilling, requiring them to compensate affected customers and improve service delivery
The Nigerian federal government is set to disburse approximately N180.8 billion as an electricity subsidy for consumers in Bands ‘B’ to ‘E’, whose tariffs have been frozen since December 2022. This information emerged from the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) 2024, released by the Nigerian Electricity Regulatory Commission (NERC) on Friday, August 13, 2024
In addition to the subsidy announcement, NERC has fined the 11 electricity distribution companies (Discos) a total of about N8.3 billion for overbilling customers. The commission has mandated these companies to compensate the affected consumers.
The fines vary, with Abuja Disco facing the highest penalty of N1.69 billion. Eko Disco and Ikeja Disco have fines of N1.41 billion, while Jos Disco is fined N1.338 billion. Other penalties include N1.16 billion for Port Harcourt Disco, N804 million for Benin Disco, N310 million for Enugu Disco, N15 million for Ibadan Disco, N115 million for Kaduna Disco, N54 million for Yola Disco, and N20 million for Kano Disco.
The regulatory order, signed by NERC’s Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, also confirms that electricity tariffs will remain unchanged for September 2024. This order is a response to Discos’ non-compliance with previous directives aimed at controlling estimated billing practices
Under the new order, Discos must publish explanations on their websites within 24 hours if they fail to meet the service commitments on Band ‘A’ feeders for two consecutive days. They must also maintain a rapid response team to ensure service delivery meets the promised minimum hours, which should be updated daily on their websites.
The response teams must also be accessible through dedicated contact numbers and emails, promptly address customer complaints, and coordinate with the Transmission Company of Nigeria (TCN) for optimal load management.
Suppose Discos fails to provide the committed service for two consecutive days. In that case, they must explain the reasons on their website by the following day and update customers on the restoration timeline.
Failure to meet the service level for seven consecutive days will result in the feeder being downgraded. Regarding the subsidy, NERC has approved substantial payments for the Discos this month: N26.4 billion for Abuja Disco, N23.76 billion for Ikeja Disco, N22.21 billion for Ibadan Disco, N19.92 billion for Eko Disco, N14.87 billion for Benin Disco, N14.61 billion for Enugu Disco, N13.45 billion for Port Harcourt Disco, N13.14 billion for Kaduna Disco, N12.96 billion for Kano Disco, N11.68 billion for Jos Disco, and N8.06 billion for Yola Disco.
The government’s policy maintains the tariff freeze for these consumer bands until further notice.