NERC strengthens oversight with revised KPIs for DisCos starting Q1 2025
The Nigerian Electricity Regulatory Commission (NERC) has introduced an addendum to its Order on the Performance Monitoring Framework for Electricity Distribution Companies (DisCos), with the aim of enhancing operational efficiency and accountability.
The addendum, designated Addendum 1, was issued on December 23, 2024, and includes significant updates to the Key Performance Indicators (KPIs) originally outlined in the Order dated July 5, 2024.
The revised KPIs will come into effect from the first quarter of 2025.
This information was conveyed in a statement posted on X (formerly Twitter) on Tuesday.
This initiative is part of NERC’s ongoing commitment to ensuring that DisCos provide improved energy services to consumers while upholding high standards of accountability and customer satisfaction.
“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,” the statement read.
The addendum revises three critical KPIs to address gaps in compliance and operational performance:
DisCos are now required to offtake at least 95% of available nominated energy for at least two out of the three months in each quarter.
Failure to meet this target will result in a 5% reduction in the DisCo’s administrative operational expenditure for the following quarter. This adjustment is designed to encourage DisCos to optimise energy delivery to customers.
Compliance with the Uniform System of Accounts has been revised from a monthly to a two-month period per quarter.
Non-compliance for two months within a quarter will trigger stringent enforcement measures, including the potential withdrawal of the “Fit and Proper” approval for the DisCo’s Chief Finance Officer or equivalent positions.
The timeline for resolving customer complaints through the NERC Contact Centre and NERC Headquarters has been updated. DisCos must now resolve 75% of all complaints within a quarter, reflecting an increased focus on customer satisfaction.
To ensure smooth compliance, NERC will issue Rectification Directives for all outstanding issues related to the revised KPIs for Q3 and Q4 of 2024. The enhanced enforcement framework, as outlined in Addendum 1, will officially take effect in Q1 2025.
NERC’s proactive approach to refining the regulatory framework underscores its commitment to fostering transparency and efficiency in Nigeria’s electricity distribution sector. By holding DisCos to higher standards of accountability and performance, the Commission aims to address long-standing challenges in energy delivery and customer service.
