NERC digitizes electricity bill collection, issues new guidelines for transparency

The Nigerian Electricity Regulatory Commission (NERC) has issued new comprehensive guidelines to standardize and digitize electricity bill collections, aiming to significantly boost transparency and efficiency within the Nigerian Electricity Supply Industry (NESI).

The directive, titled “Guidelines on Registration and Engagement of Third-Party Collection Service Providers,” was signed by NERC Chairman Sanusi Garba and takes immediate effect under Section 226 of the Electricity Act 2023.

These new rules primarily apply to Distribution Companies (DisCos) operating in states without independent electricity markets and are aligned with the Federal Government’s broader cashless economy initiative.

Under the new regulations, strict criteria have been set for agents involved in electricity bill collection:

• Licensed Agents Only: Only licensed third-party agents with valid permits from the Central Bank of Nigeria (CBN), full integration with the Nigeria Inter-Bank Settlement System (NIBSS), and complete tax compliance are permitted to collect electricity payments.
• Prohibition of Unlicensed Agents: Unlicensed agents are now strictly prohibited from collecting payments. Furthermore, all existing collection contracts must be submitted to NERC for approval within 90 days.
• Commission Limits: To protect consumers, NERC has set specific commission limits. USSD payments under ₦5,000 are capped at a maximum charge of ₦20. For rural agents, commissions are limited to 3.25% per transaction, with a maximum cap of ₦2,000.
• No Commissions for Maximum Demand Customers: Consistent with previous cashless policies, Maximum Demand customers (large industrial and commercial consumers) will not be charged commissions on their payments.

The guidelines specifically mandate digital payment channels for all electricity bill collections, encouraging the use of platforms such as USSD, Point-of-Sale (PoS) terminals, payment kiosks, mobile wallets, and online banking.

NERC also stipulates that all service agreements between DisCos and third-party collection agents must include clear performance indicators, be regularly reviewed, and require the disclosure of transaction account details for regulatory approval.

Non-compliance with any of these new guidelines may result in significant sanctions against the defaulting parties.

This move by NERC is expected to streamline the payment process, reduce revenue leakages, and enhance consumer confidence in the electricity billing system across Nigeria.

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