NERC Fines 11 DisCos N10.5bn For Over-billing Unmetered Customers

The Nigeria Electricity Regulatory Commission (NERC) has sanctioned the 11 electricity distribution companies (DisCos) in the country with a N10.5billion fine over non-compliance with capping of estimated bills for unmetered customers.

According to NERC, in a statement dated February 8, 2024, the deduction would be made from the annual allowed revenues of the 11 DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.

NERC disclosed this in the statement via its official X handle on Friday.

The commission also asked DisCos to issue credit adjustments to all overbilled unmetered customers from January to September 2023 by the March 2024 billing cycle as part of the sanction.

“DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024,” the regulatory commission stated.

As of the recent data by the Commission, unmetered customers in Nigeria stand at 6.68 million out of the 12 million people that registered to get into the system in the third quarter of 2023.

However, according to NERC, a review of the DisCos billing unmetered customers for 2023 has revealed non-compliance with the energy caps issued by the Commission.

In a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023(“EA 2023”), issued the Order Non-Compliance with Capping of Estimated Bills with Order No: NERC/2024/004-014.

“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 align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry,” the statement read.