NERC strengthens oversight with revised KPIs for DisCos beginning Q1 2025 

The Nigerian Electrical energy Regulatory Fee (NERC) has launched an addendum to its Order on Efficiency Monitoring Framework for Electrical energy Distribution Corporations (DisCos), aimed toward enhancing operational effectivity and accountability.

The Addendum – 1, issued on December 23, 2024, introduces vital updates to the Key Efficiency Indicators (KPIs) initially stipulated within the Order issued on July 5, 2024.

The revised Key Efficiency Indicators (KPIs) will take impact from the primary quarter of 2025.

This was contained in a press release posted on X (previously Twitter) on Tuesday.

This initiative is a part of NERC’s dedication to making sure that DisCos ship improved power providers to customers whereas sustaining excessive requirements of accountability and customer satisfaction.

“The Order seeks to make sure compliance with the Key Efficiency Indicators (KPIs). These embody accountability by the DisCos’ administration, elevated operational efficiency, improved power supply to clients, and customer satisfaction,” the assertion learn.

Key Updates within the Addendum 

The addendum revises three important KPIs to handle gaps in compliance and operational efficiency:

1. Power Offtake Compliance

• Revised Penalty Timeline: DisCos should now guarantee they offtake a minimum of 95% of accessible nominated power for 2 out of three months per quarter.
• Penalty for Non-Compliance: A failure to fulfill this goal will lead to a 5% discount within the DisCo’s administrative operational expenditure for the next quarter. This adjustment goals to incentivize DisCos to optimize power supply to clients.

2. Monetary Reporting Requirements

• Prolonged Reporting Interval: Compliance with the Uniform System of Accounts has been revised from a month-to-month to a two-month per quarter foundation.
• Enforcement Motion for Default: Non-compliance for 2 months inside 1 / 4 will set off stringent enforcement measures, together with the doable withdrawal of the “Fit and Correct” approval for the DisCo’s Chief Finance Officer or equal positions.

3. Buyer Complaints Decision

• Enhanced Decision Goal: The timeline for resolving customer complaints through the NERC Contact Centre and NERC Headquarters has been up to date. DisCos should now obtain a 75% decision price for all complaints inside 1 / 4, reflecting an elevated give attention to customer satisfaction.

Implementation and Enforcement 

To make sure seamless compliance, NERC will subject Rectification Directives for all excellent points associated to the revised KPIs for Q3 and This autumn of 2024. The improved enforcement framework, as outlined in Addendum – 1, will formally take impact in Q1 2025.

NERC’s proactive strategy to refining the regulatory framework demonstrates its dedication to fostering transparency and effectivity in Nigeria’s electrical energy distribution sector. By holding DisCos to greater requirements of accountability and efficiency, the Fee goals to handle long-standing challenges in power supply and customer service.