NERC Fines 8 DisCos N628.03m For Overbilling Unmetered Customers

The Nigerian Electricity Regulatory Commission (NERC) has imposed fines totaling N628.03 million on eight Electricity Distribution Companies (DisCos) for non-compliance with the capping of estimated billing for unmetered customers.

The affected DisCos include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.

This sanction is Pursuant to section 34(1)(d) of the Electricity Act 2023 (“EA 2023”).

NERC, in a release on Thursday, said  this sanction follows a review of billing practices between July and September 2024, which revealed that the DisCos failed to adhere to monthly energy caps issued by NERC.

These caps were designed to align estimated bills for unmetered customers with the consumption levels of metered customers on the same feeder.

According to the regulator, the fines represent five per cent of the gross overbilling during the period under review.

In addition to financial penalties, NERC also mandated the affected DisCos to provide credit adjustments to all overbilled customers by May 15, 2025, coinciding with the end of the April billing cycle.

NERC emphasised its commitment to consumer protection and regulatory compliance within Nigeria’s electricity industry, reiterating its stance against arbitrary billing practices.

“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.

“A review of DisCos’ billing of unmetered customers for July – September 2024 (2024/Q3) revealed non-compliance with the monthly energy caps issued by the Commission.

“The non-compliant DisCos have been sanctioned to pay fines amounting to six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo (N628,031,583.94), which is equivalent to 5% of the naira value of the gross overbilling for the period under review.

‘The Commission has also mandated the Discos to issue commensurate credit adjustments to all customers affected by the overbilling by 15th May 2025 – the end of the April 2025 billing cycle.

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