The Nigerian government is looking to achieve a more stable and efficient power supply in 2025 with the introduction of new Key Performance Indicators (KPIs) for power distribution companies.
The National Electricity Regulatory Commission (NERC) announced the KPIs in a statement posted on its official X handle on Tuesday, as part of its commitment to ensuring that power companies deliver improved services to Nigerians while maintaining accountability and customer satisfaction.
The new KPIs which will take effect from January 2025, will address three critical areas in Nigeria’s power distribution chain to ensure optimal service delivery. The first area captured in the KPI is Energy off-take compliance. Under this section, power companies must off-take at least 95% of allotted energy for two out of three months per quarter and failure to meet up with this regulation will result in 5% reduction in the company’s operational expenditure for the next quarter.
In addition, the new KPI has sections covering financial reporting standard. Under this section, there must be compliance with the uniform System of Accounts and failure to do so will lead to series of sanctions including seizure of approval for the company’s Chief Finance Officer or its equivalent position.
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Also, the KPI covers area bordering on customer complaint resolution. This makes it mandatory for power companies to achieve 75% customer complaint resolution within a quarter, indicating a major focus on customer satisfaction in the new year.
The Electricity Regulatory Commission is working towards an effective and reliable power sector by holding power companies to a higher performance and accountability standard.
