NERC fines 8 Discos N628m for overbilling

The Nigerian Electricity Regulatory Commission (NERC) has fined 8 electricity Distribution Companies (DisCos) M628,031,583.94 (million) for violating its capping order on estimated bills for unmetered customers. A statement by NERC on Thursday said the fine was in pursuant to section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), which Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, […]

The Nigerian Electricity Regulatory Commission (NERC) has fined 8 electricity Distribution Companies (DisCos) M628,031,583.94 (million) for violating its capping order on estimated bills for unmetered customers.

A statement by NERC on Thursday said the fine was in pursuant to section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), which Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos failed 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.”

It said 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 (NESI).