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NERC releases guidelines for third-party electricity bill collections

The Nigerian Electricity Regulatory Commission has introduced new guidelines to ensure a digitised, transparent, and accountable system for electricity revenue collection.

Released on Wednesday and signed by NERC Chairman Sanusi Garba, the directive is titled “Guidelines on Registration and Engagement of Third-Party Collection Service Providers.”

The new regulatory directive, effective immediately, is based on the authority granted to the Commission under Section 226 of the Electricity Act 2023.

These guidelines primarily target Electricity Distribution Companies operating in states where electricity markets have not yet been established.

NERC explained that this initiative supports the Federal Government’s drive toward a cashless economy and seeks to strengthen oversight of electricity revenue collection within the Nigerian Electricity Supply Industry.

Under the new framework, Distribution Companies are forbidden from using unlicensed agents for bill collection.

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.

The document read, “These Guidelines seek to provide clear guidance to DisCos on modalities for the registration of third-party collection agents, including applicable service charges, promote transparency and accountability in revenue collections from electricity sales by third-party collection service partners engaged by Discos, and standardise the use and engagement of third-party collection service partners.

It will also enhance revenue collection in the NESI, ensure the efficiency of revenue collection contracts, and minimise the risk of loss of revenue arising from DisCos’ engagement of third-party collection service providers.”

The latest guidelines aim to institutionalise digital payments across all channels, including USSD codes, Point-of-Sale terminals, vending kiosks, mobile wallets, and internet banking platforms.

Under the directive, all Discos must submit their existing contracts with Collection Service Providers (CSPs) for regulatory review within 90 days. Non-compliance may result in sanctions.

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