FG orders power distribution companies to use the cashless payment system for electricity bills

The Federal Government has ordered power distribution companies to end cash payment for electricity bills. This directive includes all its customers, from residential, industrial and commercial customers.

It stated that beginning from January 2, 2020, the distributors had till January 31 and March 31, depending on the class of customers, to comply with the order, which was issued by the Nigerian Electricity Regulatory Commission in a document with reference ‘Order No/NERC/183/2019.’

The document, which was dated December 30, 2019, was signed by both the NERC Chairman, James Momoh; and the NERC Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye.

The commission noted in the document that the Federal Government issued a policy directive requiring the mandatory transition from direct cash settlement of bills to cashless settlement platforms of certain classes of Discos end-use customers.

It said this was to reduce collection leakages/losses and boost the Nigerian electricity supply industry’s overall revenue security.

“The commission notes that this policy directive complies with the EPSRA (Electric Power Sector Reform Act) and the laws of the Federal Republic of Nigeria,” it stated.

It added, “The commission hereby orders that without prejudice to the provisions of section 10 of the Meter Reading, Billing, Cash Collections and Credit Management for Electricity Supplies Regulations, 2007, all Discos shall transit to cashless settlement platforms for the billing/collection of industrial and commercial customers by 31 January 2020.”

The regulator clarified that all Discos will move to cashless settlement platforms for billing and payment of the R3 class of residential customers by March 31 without prejudice to the provisions of section 10 of the cash collection regulation.

The NERC stated that all Discos should leverage available banking channels approved by the Central Bank of Nigeria in complying with the directive.

The regulator further clarified that all properly licensed collection agents and other service providers would exclusively operate dedicated accounts for the purpose of billing / collecting income from Discos customers.

To ensure a successful transition of customers to cashless settlement platforms, the commission said all Discos must promote the adoption of end-to-end electronic payments by all stakeholders in the sector.

It said the power distributors should provide customers with appropriate bank account details and other approved channels for receiving/processing payments such as mobile money and electronic wallets.

It further stated that all Discos should ensure full accountability of energy flow with the installation of appropriate metering infrastructure integrated with the customer management systems of all industrial, commercial and the R3 class of residential customers by December 31, 2020.

“All Discos shall comply with the reporting requirements prescribed by the commission pursuant to this order,” the NERC stated.

It said the commission and the CBN or its delegates would monitor all third-party dedicated accounts for the billing/collections of funds from industrial, commercial and the R3 residential class of customers of Discos.

“This order supersedes, overrides, extinguishes all other forms of billing and collections from industrial, commercial and R3 residential class of customers of Discos,” the NERC declared.

The commission specified that Discos were the approved power sector revenue collection agents, stressing that failure to comply with the order would be viewed as a violation of the distribution license terms and conditions.

EPSRANERCpower distribution companies
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