• About Us
  • Contact Us
  • Privacy & Policy
Monday, August 4, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

NERC Hits DisCos with Financial Penalties Over Energy Shortfalls

Vincent Amadi by Vincent Amadi
July 10, 2024
in Economy
Reading Time: 3 mins read
A A
0
NERC Hits DisCos with Financial Penalties Over Energy Shortfalls
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


The Nigerian Electricity Regulatory Commission imposed severe sanctions on electricity suppliers who committed violations likely to cause harm to consumers.
Among other things, NERC announced a 5% reduction in the administrative and operational expenses of all electricity distribution companies that did not purchase at least 95% of the total energy allocated for distribution.
This was contained in the Commission’s Order on the Performance Monitoring Framework for all electricity distribution companies. According to the Order, electricity distribution companies would henceforth be assessed on seven key performance indicators namely energy usage against fractional contracted capacity, revenue collection rate, compliance with Unified Account System reporting, compliance with API feeder streaming, and compliance with order caps. They would comply with the decisions of the forum and adhere to service standards for resolving complaints received through the NERC Contact Centre and NERC Headquarters.


The Order provided that a remedial order would be issued if up to 95 percent of the available nominations were not accepted within one month.
However, if a DisCo fails to accept up to 95% an available nominations in two of the three months in any quarter, the DisCo’s guaranteed and operating expenses for the following quarter will be adjusted downwards by 5%.
Further, for every over-billing to a customer, 10% of the total over-billing amount for that period will be deducted from the DisCo’s annual management and operating expenses allowance at the next Tariff review and a credit adjustment will be made against the over-billing to the customer.


“If the amount of overbilled energy exceeds 20% of the allowable limit or the number of overbilled customers exceeds 20% of the non-metered customer base, the Commission may take other enforcement action including revocation of KYL on electricity tariffs. Billing Officer or Billing Officer The person responsible for the billing function of the utility company.
If the DisCo fails to resolve the complaint through the NERC Contact Centre or Head Office within the expiry of the CPR, the DisCo must pay a penalty within the first month. Billing: N10,000/day; Isolation: N2,000/day; Interruption: N2,000/day; Measurement: 1,000 N/day; Connection delay: 1,000 N/day; Tension: 1,000 N/day.”
After two months of non-compliance with consumer grievance resolution, the order states, “The Commission may take other enforcement action, including cancellation of the KYL of the Customer Service Officer or the official responsible for resolving customer grievances to the power utility.”


“The NERC order states that during the validity of Order No. NERC/320/2022, the Commission conducted periodic evaluations of DisCos’ performance against the set targets and made regulatory interventions as provided for in the order. The Commission found that the DisCos’ failure to fully comply with all KPIs contained in Order No. NERC/320/2022 has led to failure of the distribution companies to perform their business, resulting in compliance obligations, widespread customer dissatisfaction, undermining their ability to maintain market discipline, and jeopardizing the long-term financial sustainability of the power utility.
“The imposition of any resulting regulatory intervention provided for in this Order shall not be construed as limiting or precluding the power of the Commission to impose other enforcement measures under the Electricity Act or any other regulatory instrument.
“The order is issued without prejudice to the existing commitments and obligations of the DISCOs as provided for in the contracts concluded and in the existing regulations of the NESI,” dated July 5, 3024 order, signed by NERC chairman, Sanusi Garba.

Tags: businessnigeria
Vincent Amadi

Vincent Amadi

Related Posts

High Interest Rate Tops Business Constraints in Nigeria
Economy

High Interest Rate Tops Business Constraints in Nigeria

1 week ago
Naira depreciates against dollar twice in one week
Economy

Naira depreciates against dollar twice in one week

2 weeks ago
Dangote Refinery Drops Pump Prices Again with a Price Range between 875 and ₦905 Nationwide
Economy

Dangote Refinery Targets 700,000 BPD Capacity by Year-End

2 weeks ago
Nigerian Stock Market Gains N833bn as Dangote, BUA Lead Rally
Economy

Nigerian Stock Market Gains N833bn as Dangote, BUA Lead Rally

2 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

D’Tigress Beat Mali to Claim Historic Fifth Consecutive Title
National

D’Tigress Beat Mali to Claim Historic Fifth Consecutive Title

20 minutes ago
No going back on 30th August LGA elections in Rivers State – RSIEC
National

No going back on 30th August LGA elections in Rivers State – RSIEC

14 hours ago
Peter Obi urges Northern leaders to invest in education to tackle poverty
National

`My One-Term, Four-Year Vow Is Sacrosanct` — Peter Obi

16 hours ago
2027 election will be chaotic and dangerous – Mahdi Shehu
National

2027 election will be chaotic and dangerous – Mahdi Shehu

17 hours ago
FG Lifts Restrictions on NYSC Members’ Deployment to Private Sector, Open Doors to Banks and Oil Companies
National

NYSC Rivers State: Ibas Urges Corps Members to Promote Ethical Values

2 days ago
Governor Adeleke Denies PDP Defection Rumour
National

Governor Adeleke Dismisses Defection Rumour, Reaffirms PDP Loyalty

2 days ago

POLITICS

Peter Obi, El-Rufai Granted Waiver Ahead 2027 Election

APC’s plan to divide ADC into factions won’t work – Ganduje’s ex-aide

17 hours ago
Usani Usani Quits APC, Joins ADC as South-South Leader

Usani Usani Quits APC, Joins ADC as South-South Leader

2 days ago
2027: Why Peter Obi may return to PDP

Enugu PDP Stakeholders Reject Defection Rumors, Reaffirm Party Loyalty

2 days ago
Imoke, Usani Back ADC Coalition in Cross River Power Bid

Imoke, Usani Back ADC Coalition in Cross River Power Bid

3 days ago
ADC Warns APC: 2027 Presidential Election Not a Birthright

ADC Warns APC: 2027 Presidential Election Not a Birthright

4 days ago
Peter Obi, El-Rufai Granted Waiver Ahead 2027 Election

Peter Obi, El-Rufai Granted Waiver Ahead 2027 Election

4 days ago

YOUR ECONOMY

High Interest Rate Tops Business Constraints in Nigeria
Economy

High Interest Rate Tops Business Constraints in Nigeria

1 week ago
Naira depreciates against dollar twice in one week
Economy

Naira depreciates against dollar twice in one week

2 weeks ago
Dangote Refinery Drops Pump Prices Again with a Price Range between 875 and ₦905 Nationwide
Economy

Dangote Refinery Targets 700,000 BPD Capacity by Year-End

2 weeks ago
Nigerian Stock Market Gains N833bn as Dangote, BUA Lead Rally
Economy

Nigerian Stock Market Gains N833bn as Dangote, BUA Lead Rally

2 weeks ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Marketers kick against Dangote’s plan to crash price of cooking gas

3 weeks ago
Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion
Economy

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion

1 month ago

E & P

Breaking News: Hansi Flick interested in signing Ademola Lookman to Barcelona 
Sports

Ademola Lookman submits transfer for possible exit from Atalanta

by Steven Atogi
17 hours ago
0

Super Eagles forward, Ademola Lookman, has formally requested to leave Atalanta, citing a breakdown in trust and what he described...

NNPCL GMD Ojulari not forced to resign — Presidency

NNPCL GMD Ojulari not forced to resign — Presidency

17 hours ago
Super Falcons Receive OON Honour, $100K, and Apartments for WAFCON 2024 Win

Super Falcons Receive OON Honour, $100K, and Apartments for WAFCON 2024 Win

6 days ago
NPFL Set to Kick-Off 2025/2026 Season Aug. 22

NPFL Set to Kick-Off 2025/2026 Season Aug. 22

7 days ago
Tinubu Celebrates Super Falcons’ WAFCON 2024 Victory

Tinubu Celebrates Super Falcons’ WAFCON 2024 Victory

1 week ago
African School Games: Team Nigeria Arrives Annaba, Algeria 

African School Games: Team Nigeria Arrives Annaba, Algeria 

1 week ago

YOUR THOUGHT & HISTORY

Tribute to Old Port Harcourt Boy (Peter Rufai)
Columns

Tribute to Old Port Harcourt Boy (Peter Rufai)

by Tammy Opoki
2 weeks ago
A Democracy Strained: Buhari’s Human Rights Record and the Repression of Dissent
Columns

A Democracy Strained: Buhari’s Human Rights Record and the Repression of Dissent

by Odini Brains
3 weeks ago
El-Rufai Plans New Party as ADC Backup Against APC Interference
Columns

The Shadow Strategist: El-Rufai, the Illusion of Power, and 2027’s Looming Reckoning

by Odini Brains
4 weeks ago
Columns

Kidnapped, Silenced, Vindicated: The Full Impact of Kanu’s Judgment

by Odini Brains
1 month ago
The Emerging Kogi: Economic Growth Impact Transforming Better Reality
Columns

The Emerging Kogi: Economic Growth Impact Transforming Better Reality

by Kiikpoye Karibo
1 month ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

D’Tigress Beat Mali to Claim Historic Fifth Consecutive Title

D’Tigress Beat Mali to Claim Historic Fifth Consecutive Title

August 4, 2025
No going back on 30th August LGA elections in Rivers State – RSIEC

No going back on 30th August LGA elections in Rivers State – RSIEC

August 3, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address