The Nigerian Electricity Regulatory Commission (NERC) has slapped eight Distribution Companies (DisCos) with a hefty fine of N628.03 million for failing to comply with regulations regarding estimated billing for unmetered customers.
The affected DisCos are Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
The sanction, announced in a press release on Thursday, stems from a review of billing practices between July and September 2024, which revealed that the DisCos had disregarded monthly energy caps set by NERC. The commission cited Section 34(1)(d) of the Electricity Act of 2023 as the legal basis for the penalties.
“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder,” NERC stated.
The review of billing data for the third quarter of 2024 revealed that the DisCos had consistently exceeded the stipulated energy caps, leading to overbilling of unmetered customers. NERC imposed the fine, representing 5 percent of the total overbilling amount during the period under review.
Furthermore, the DisCos have been instructed to issue “commensurate credit adjustments” to affected customers by May 15, 2025, coinciding with the end of the April 2025 billing cycle.
NERC reiterated its commitment to ensuring regulatory compliance and safeguarding the interests of electricity consumers within the Nigerian electricity supply industry (NESI).
The commission’s firm stance on this issue highlights its determination to curb unfair billing practices and protect consumers from financial exploitation.
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