New Maximum Bill For Electricity Users Without Meters In Nigeria

Daily Law Tips (Tip 513) by Onyekachi Umah, Esq., LLM. ACIArb(UK)

NEW MAXIMUM BILL FOR ELECTRICITY USERS WITHOUT METERS IN NIGERIA.

The regulator of Nigeria’s electricity industry is the Nigerian Electricity Regulatory Commission (NERC). It regulates every market participants including Generation Companies, Transmission Company, Distribution Companies /Retailers and ancillary services providers. Having frowned at the growing number of unmetered electricity users, who are forced to pay monthly estimated bills, have made an order protecting such users from estimated bills in any part of Nigeria.

First of all, the recent Order issued by NERC applies and affects all the Distribution Companies in Nigeria. The distribution companies are;
Abuja Electricity Distribution Plc (AEDC),
Benin Electricity Distribution Plc (BEDC), Eko Electricity Distribution Plc (EKEDC), Enugu Electricity Distribution Plc (EEDC), Ibadan Electricity Distribution Plc (IBEDC), Ikeja Electricity Distribution Company (IKEDC), Jos Electricity Distribution Plc (JEDC), Kaduna Electricity Distribution Plc (KNEDC), Kano Electricity Distribution Plc (KEDC), Port Harcourt Electricity Distribution Plc (PHEDC) and Yola Electricity Distribution Company Plc (YEDC).

By “ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020” issued by NERC, signed on 20 February 2020, no person in Nigeria is allowed to pay estimated electricity bill as from 20 February 2020. Estimated billing system has been repealed and abolished in Nigeria. The said Order clearly repealed NERC’s (Methodology for Estimated Billing) Regulations 2012.

The recent order of NERC, mandates DISCOs to identify and meter all electricity users before 30 April 2020. It also set the maximum fee that any unmetered user can be charged in any part of Nigeria, monthly. And, any user that already pays electricity bill that is lower than the maximum rate stated by NERC is also allowed to continue paying such low bill. By the said recent order of NERC, the maximum monthly electricity bill any unmetered user in Nigeria can pay is #200.00 for Residential Customers of Class 1 (lifeline, R1). The Order states varying rates maximum bills depending on location for Residential Customers of Class 2 (R2- single or 3 phase).

My authority is NERC’s ORDER ON THE CAPPING OF ESTIMATED BILLS IN THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY, 2020. A copy can be downloaded above cited authority can be downloaded via the link below.

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