According to NERC, this action is aimed at reinforcing the policy framework introduced in 2020 under the Capping of Estimated Bills Order (Order No: NERC/197/2020), which seeks to align estimated billing for unmetered customers with the average usage of their metered counterparts on the same feeder.
The Nigerian Electricity Regulatory Commission (NERC) has imposed financial sanctions on eight Electricity Distribution Companies (DisCos) for failing to comply with the Commission’s capped billing regulations for unmetered customers during the third quarter of 2024.
In a statement issued on Thursday, NERC stated that the sanctioned DisCos — Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, were found to have breached the energy caps stipulated by the Commission between July and September 2024, in violation of Section 34(1)(d) of the Electricity Act 2023.
The penalties, totalling N628,031,583.94, represent 5% of the naira value of the gross overbilling recorded during the period.
According to NERC, this action is aimed at reinforcing the policy framework introduced in 2020 under the Capping of Estimated Bills Order (Order No: NERC/197/2020), which seeks to align estimated billing for unmetered customers with the average usage of their metered counterparts on the same feeder.
“A comprehensive review of the billing records for Q3 2024 exposed several instances of non-compliance with the monthly energy caps by the affected DisCos,” the Commission stated.
“This undermines the intent of the capping order and unfairly penalises unmetered customers.”
In addition to the financial sanctions, NERC said it has directed the DisCos to issue credit adjustments to all affected customers no later than May 15, 2025, coinciding with the end of the April 2025 billing cycle.
The Commission emphasised its unwavering commitment to upholding consumer rights and ensuring strict regulatory compliance within the Nigerian Electricity Supply Industry (NESI).
“This action sends a clear signal that NERC will not tolerate any disregard for established regulatory frameworks, especially those designed to protect the most vulnerable electricity consumers,” the statement added.
Consumers are encouraged to monitor their bills and report any discrepancies to their respective DisCos or NERC’s customer complaints platform.
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