NERC Reviews Order on Performance Monitoring Framework for DisCos

Following the issuance of an Order on Performance Monitoring Framework for Electricity Distribution Companies on 5th July 2024, the Nigerian Electricity Regulatory Commission (NERC) has issued an Addendum - 1 to this Order, effective 23rd December 2024.

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.

In addition to the performance obligations and customer service guidelines in the earlier Order to the DisCos, Addendum - 1 reviewed three of the KPIs as follows:

Penalty for default in energy offtake reviewed from one month to two months per quarter: Failure to offtake up to 95% of available nominated energy in two out of the three months per quarter attracts a downward adjustment of DisCos’ administrative operational expenditure by 5% for the next quarter.

Failure in reporting using the Uniform System of Accounts reviewed from monthly to two months per quarter: Failure to meet two months compliance targets attracts enforcement actions including withdrawal of “Fit and Proper” approval of the DisCo’s Chief Finance Officer or its equivalent position.

Timeline to comply with complaints resolution through NERC Contact Centre and NERC HQ reviewed from two months compliance target by DisCos.

NERC now expects 75% resolution rate for all complaints within a quarter. NERC shall issue Rectification Directives for all compliance issues for the three affected KPIs for Q3 and Q4 2024.

The updated enforcement framework contained in the Addendum - 1 shall be applied from Q1 2025. To read the entire Addendum – 1 to Order on Performance Monitoring Framework for Electricity Distribution Companies, kindly visit the NERC website at http://nerc.gov.ng