NERC fines eight DisCos N628m for overbilling unmetered customers

The Nigerian Electricity Regulatory Commission (NERC) has imposed fines totalling N628.03 million on eight electricity distribution companies for failing to comply with the approved capping of estimated billing for unmetered customers.

The sanctioned companies include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Electricity Distribution Companies.

The regulatory action, announced in a statement released on Thursday, April 10, followed a detailed review of billing practices from July to September 2024. According to NERC, the affected DisCos did not adhere to the monthly energy caps stipulated by the commission, which are designed to protect unmetered consumers from being charged excessively.

The penalties represent five per cent of the total overbilled amount during the third quarter of 2024. NERC also ordered the defaulting distribution companies to issue credit adjustments to all affected customers no later than May 15, 2025, aligning with the conclusion of the April billing cycle.

NERC reaffirmed its commitment to enforcing regulatory compliance and ensuring the protection of electricity consumers across the country. The commission recalled that in 2020 it issued the Capping of Estimated Bills Order (Order No: NERC/197/2020), which introduced monthly caps intended to limit estimated bills for unmetered customers based on the average consumption of metered customers on the same supply feeder.

The commission reiterated that arbitrary billing practices would not be tolerated and that it would continue to monitor DisCos for adherence to its regulations.