The Nigerian Electricity Regulatory Commission (NERC) has fined Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Electricity Distribution Companies the sum of N628.03 million for non-compliance with the capping of estimated billing for unmetered customers.
The commission conveyed the sanction in a release on Thursday.
It explained that the action was a sequel to a review of billing practices between July and September 2024, which revealed that the affected DisCos failed to adhere to monthly energy caps issued by NERC.
The fines represent five per cent of the gross overbilling during the period under review, it said.
Besides, NERC also mandated the affected DisCos to provide credit adjustments to all overbilled customers by May 15, 2025, coinciding with the end of the April billing cycle.
It emphasised its commitment to consumer protection and regulatory compliance within Nigeria’s electricity industry, reiterating its stance against arbitrary billing practices.
“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 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,” the commission added.
