It is not wrong for a distribution company to request any customer to lodge with it a specific sum calculated in line with the law as security for future electricity bill. Most times, this is necessary for instance in the case of an existing customer who has a long history of non-payment of electricity bills.
Regulation 12(1) NERC’s Meter Reading, Cash Collection and Credit Management for Electricity Supply Regulation 2007
The maximum amount of a security deposit that a distribution company may request from a customer is an amount that is equal to the average of 2 months bill for the customer.
Regulation 12(2) NERC’s Meter Reading, Cash Collection and Credit Management for Electricity Supply Regulation 2007
There is nothing wrong with that. A distribution company is at liberty to review the amount of each security deposit on the anniversary of the initial deposit and where the deposit held is found to be less than the value of the average of 2 months bill for the customer, then the Disco may request addition payment by the customer to increase the security deposit to an amount equal to a customer’s 2 months bill average.
Regulation 12(3) NERC’s Meter Reading, Cash Collection and Credit Management for Electricity Supply Regulation 2007.
Yes. Where the deposit is found to be more than the value of an average of 2 months bills for a customer, the distribution company (Disco) must as a matter of fact within ten (10) working days advise the customer in writing and refund the excess amount held.
Regulation 12(4) NERC’s Meter Reading, Cash Collection and Credit Management for Electricity Supply Regulation 2007.
A distribution company may hold the security deposited by a customer until the customer vacates the premises for which the security deposit is held and a final account is produced, in which case, the distribution company shall offset the amount of the security deposit against the final bill.
Regulation 13(2) NERC’s Meter Reading, Cash Collection and Credit Management for Electricity Supply Regulation 2007.