- The Nigerian Electricity Regulatory Commission fined eight electricity distribution companies N628 million for non-compliance with estimated billing rules between July and September 2024
- It said the penalty is equivalent to five per cent of the naira value of the gross overbilling for the period under review
- NERC ordered the DisCos to issue commensurate credit adjustments to affected customers by May 15, 2025
The Nigerian Electricity Regulatory Commission (NERC) has slammed eight electricity distribution companies (DisCos) with a N628 million fine for failing to comply with monthly energy caps for unmetered customers between July and September 2024.
According to a statement by the NERC, shared on its official X handle on Thursday, April 10, the affected DisCos include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
The NERC said the N628 million penalty is equivalent to five per cent of the naira value of the gross overbilling for the period under review.
The NERC said the monthly energy cap for unmetered customers was introduced in 2020 under the Order on Capping Estimated Bills to align estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
The commission said that after a review, it found that the order was not complied with by the eight DisCos between July and September 2024, which necessitated the sanction.
“Pursuant to Section 34(1)(d) 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 Yola, 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 non-compliance with the monthly energy caps issued by the commission.
“The non-compliant DisCos have been sanctioned to pay fines amounting to N628,031,583.94, which is equivalent to five per cent of the naira value of the gross overbilling for the period under review,” the statement read.
NERC orders DisCos to reimburse credit to affected customers
The statement added that the DisCos must issue credit adjustments to affected customers by May 15, 2025, which marks the end of the April 2025 billing cycle.
The commission said the sanction is vital to ensure regulatory compliance and consumer protection in the Nigerian Electricity Supply Industry.
“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 NERC added.
DisCos collected N509.84 billion from customers in Q4 2024 – NERC
Meanwhile, TheRadar earlier reported that the Nigerian Electricity Regulatory Commission disclosed that electricity distribution companies (DisCos) collected N509.84 billion in the fourth quarter (Q4) of 2024 out of the N658.40 billion billed to customers.
According to NERC’s 2024 Fourth Quarter Report, published on its website on Tuesday, March 25, this translates to 77.44 per cent collection efficiency.
