NERC unveils new guidelines on third-party electricity bill collection

The Nigerian Electricity Regulatory Commission (NERC) on Wednesday, published new guidelines that will oversee digitised, transparent, and accountable framework for electricity revenue collection.

The new regulatory directive was signed by the NERC chairman, Sanusi Garba.

The new regulatory directive, which takes effect immediately, is anchored on the powers conferred upon the commission by Section 226 of the Electricity Act 2023.

The guidelines are targeted primarily at electricity distribution companies operating in states that have yet to establish their electricity markets.

NERC stated that the move aligns with the Federal Government’s push for a cashless economy and aims to tighten controls over electricity revenue inflows in the Nigerian Electricity Supply Industry.

Under the new framework, DisCos are prohibited from engaging unlicensed agents for bill collections.

Only third-party collection service providers with valid Central Bank of Nigeria permits, verified integration with the Nigeria Inter-Bank Settlement System, and strict tax compliance will be eligible to operate.