The Nigerian Electricity Regulatory Commission has slammed a combined fine of N628 million on eight Electricity Distribution Companies for breaching the capping regulation on estimated billing for unmetered customers.
The affected DisCos include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
NERC said the sanction followed a detailed review of the utilities’ billing practices between July and September 2024, which showed non-compliance with its energy cap orders aimed at protecting consumers from arbitrary billing.
In a statement issued on Thursday, the Commission disclosed that the fines represent five per cent of the total overbilling recorded within the three-month period, in line with Section 34(1)(d) of the Electricity Act, 2023.
“In 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) to align estimated bills for unmetered customers with the average consumption of metered customers on the same feeder,” the regulator said.
It added, “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 Commission put the total fine at N628,031,583.94, and mandated that all affected DisCos issue commensurate credit adjustments to overbilled customers no later than May 15, 2025.
This date, NERC noted, coincides with the close of the April billing cycle.
The regulatory body reaffirmed its commitment to consumer protection and regulatory compliance in the Nigerian Electricity Supply Industry, warning that erring utilities would continue to face stiff penalties.
“The Commission remains resolute in its commitment to ensure that electricity customers are not subjected to unfair billing practices and will continue to hold DisCos accountable to their obligations under the law,” the statement added.
This development comes amid longstanding complaints from consumers and advocacy groups over extortionate estimated billing, often worsened by the slow pace of metering across the country.
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