Nigerian Electricity Regulatory Commission Methodology for Estimated Billing, 2012
Act · Energy
Policy date: 2012-01-01
A Methodology prescribes how electricity distribution companies calculate estimated bills for customers without meters using fair and transparent criteria. It targets unmetered customers and distribution companies to ensure billing accuracy. This protects consumers from excessive charges.
Nigerian Electricity Regulatory Commission Methodology for Estimated Billing, 2012
What Is This Policy?
A methodology issued by NERC that prescribes how electricity distribution companies should calculate estimated bills for customers who do not have functioning meters, ensuring that estimates are fair and based on transparent criteria.
Who Does It Target?
Unmetered electricity customers Electricity distribution companies (DisCos) NERC tariff and consumer affairs staff Consumer advocacy organizations
What Does It Aim to Achieve?
Protect unmetered customers from excessive or arbitrary billing by requiring distribution companies to use a standardized, transparent methodology for estimating electricity consumption.
Key Features
Customer Classification: Categorization of customers by type (residential, commercial, industrial) and consumption bands Estimation Formula: Prescribed methodology using assessed load, hours of supply, and applicable tariff Cap on Estimates: Limits on the maximum amount that can be billed through estimation Transition to Metering: Estimated billing intended as temporary until customers receive meters Complaint Mechanism: Right to dispute estimated bills and request review
Current Status
Rollout Stage: Active, applicable to all unmetered customers Coverage: All distribution companies Lead Agency: NERC Goal: Phase out estimated billing as metering coverage expands
How to Access
Customers can request information on how their estimated bills are calculated. Contact your DisCo for a breakdown of your estimated bill File a complaint with NERC if the methodology is not being followed
Official Resources
Website: nerc.gov.ng Contact: NERC, Abuja
Legal Framework
The NERC Methodology Regulations are issued by the Nigerian Electricity Regulatory Commission under the Electricity Act 2023 and the NERC (Establishment) Act. They operate alongside the Multi-Year Tariff Order (MYTO), the Nigerian Electricity Regulatory Commission (Procedure) Rules, and the Distribution Licence conditions. The Regulations align with the ECOWAS Regional Electricity Market methodological standards and the OECD regulatory impact assessment guidelines.