FG subsidised electricity with N135.23bn in Q2 2023 — NERC

…As DisCos receive 325,898 complaints in Q2

The Nigerian Electricity Regulatory Commission (NERC) on Wednesday said that the Federal Government (FG) paid a total of N135.23 billion to subsidise electricity consumption in the second quarter of 2023.

This is even as Electricity Distribution Companies (DisCos) cumulatively received 325,898 complaints from consumers in the second quarter.

This was made known in the commission’s Q2, 2023 report pasted on its website in Abuja.

NERC said that the N135.2 billion was spent by the Federal Government to plug revenue generation shortfall in the power sector in the period under review.

It said that this indicated an increase of N99.21 billion, representing 275 per cent compared to the N36 billion it paid in the  quarter I of 2023.

The report stated that the government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is substantially higher than the N36.02 billion it incurred in 2023/Q1.

“The government incurred a subsidy obligation of N135.23 billion in 2023/Q2, which is an increase of N99.21 billion 275 per cent compared to the N36.02 billion incurred in 2023/Q1,” it said.

The Commission stated that the subsidy was due to the absence of cost-reflective tariffs across all distribution companies.

It said that the increase recorded in the period was a result of the government’s policy to harmonise exchange rate.

The report said that on average, the subsidy obligation incurred by the government per month was N45.08 billion in Q2, 2023.

NERC said that the 325,898 complaints represent an increase of 76,215 compared with the 249,683 complaints received in the first quarter of 2023.

The report said that DisCos resolved a total of 313,442 complaints corresponding to a 96.18 per-cent resolution rate when compared to the 91.76 per cent recorded in the first quarter of 2023.

“Metering, billing, and service interruption were the prevalent issues of customer complaints, accounting for more than 75 per cent of the total complaints during the quarter under review,” it said.

NERC said that in pursuant to the provisions of its customer complaints handling standards and procedure regulations, it had to set up forum panels across the country.

According to the commission, panels were set up to review unresolved disputes from the DisCos’ Complaint Handling Units (Discos-CCU).

“The forum offices received a total of 1,485 new appeals in the second quarter with 866 pending appeals from the first quarter.

“This brings the total of appeals from customers dissatisfied with Discos’ decision on the complaints lodged at the CCU to 2,351.

“During the period, the forum Panels held 71 sittings and resolved 1,379, (58.66) per cent of the appeals filed at the forum Offices nationwide; the resolution rate was – lower than 64.38 percent achieved in the first quarter.

“The commission will continue to take measures that will ensure a more efficient customer complaint resolution process,” it said.