- Safiu Kehinde
The Nigerian Electricity Regulatory Commission (NERC) has slammed N628 milliion fine on eight electricity distribution companies over violation of estimated billing rules.
NERC, in a statement issued on Thursday faulted the DisCos’ failure to comply with monthly energy caps for unmetered customers between July and September 2024.
The affected DisCos which include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola were fined an estimate of N628 million and mandated to issue credit adjustments to affected customers by May 15, 2025.
According to the commission, the sanction is vital to ensure regulatory compliance and consumer protection in the Nigerian Electricity Supply Industry.
The statement read in part; “Pursuant to section 34(1) of the Electricity Act 2023 (“EA 2023”), the Commission has sanctioned eight (8) Electricity Distribution Companies (“DisCos”) – Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yo/a, for failing to fully comply with the monthly energy caps issued by the Commission between July – September 2024 (2024/Q3).
“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 noncompliance 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.”