In order to address complaints received from electricity consumers in respect of the concerns surrounding the system of estimated billing with a view to implementing an equitable billing methodology, the Nigerian Electricity Regulatory Commission (“NERC”) is considering the capping of estimated billing. The NERC recently issued a Consultation Paper on the Capping of Estimated Billing dated 11th October 2018 (the “Consultation Paper”) in which NERC describes the Methodology for Estimated Billing (“MEB”) as a “complete failure”. The MEB was designed to ensure that unmetered customers are fairly billed with estimates that are scientifically derived.
The purpose of the Consultation Paper is to solicit comments from industry stakeholders on the plan to sett aside the existing MEB and to explore 2 (two) options provided in the Consultation Paper to cap the monthly estimated bills issued to customers in line with the previous charge(s) applicable to the different tariff classes.
Under the first option, the average energy as provided for in the Multi-Year-Tariff-Order (MYTO) 2015 for each distribution company, would form the basis for computing the maximum cap for each category of customers to be affected. For the second option, the actual energy delivered to metered customers would be considered as the basis for deriving the caps of the various categories of unmetered customers. In arriving at the capped figure, the energy consumed by the metered customers will be subtracted from the total energy delivered and will form the basis for determining the caps.
The NERC gave 21 (twenty-one) days from the date of publication of the Consultation Paper for comments, objections and representations on the capping methodology from all stakeholders and the general public to be provided. Click on the link below to download the Consultation Paper.
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