The Nigerian Electricity Regulatory Commission has sanctioned eleven electricity distribution companies for failing to comply with the capping of estimated bills for unmetered customers.
The Nigerian Electricity Regulatory Commission has sanctioned eleven electricity distribution companies for failing to comply with the capping of estimated bills for unmetered customers.
In a notice posted on its X (formerly Twitter) account, on Thursday, NERC announced that DisCos have been fined over ₦628 million.
It said the infractions occurred between July and September 2024.
Beyond the financial penalties, NERC has instructed each electricity distribution company to apply credit adjustments to the accounts of all affected customers by May 15, 2025.
The statement reads, “Pursuant to Section 34(1)(d) of the Electricity Act 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).”
NERC noted that the distribution companies breached the Capping Order, which sets a limit on how much unmetered customers can be billed, based on the average usage of metered customers in their locality.
By exceeding the billing caps, the DisCos charged customers more than permitted, effectively exploiting unmetered electricity users.
“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 the 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 per cent 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 statement added.
Although NERC did not immediately provide a detailed breakdown of the fines for each DisCo, the commission emphasized that the sanctions are essential to uphold regulatory compliance and protect consumers within the Nigerian Electricity Supply Industry.
