The Nigerian Electricity Regulatory Commission (NERC) has levied a total fine of N628.03 million against eight electricity distribution companies (DisCos) for breaching regulations on estimated billing for customers without prepaid meters within their coverage area.
The distribution firms were Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, who were found to have contravened Section 34(1)(d) of the 2023 Electricity Act.
According to the commission, the fines were issued after an assessment of billing methods used from July to September 2024 showed that these DisCos failed to comply with NERC’s monthly energy cap regulations.
In a statement released on Thursday, the commission noted that the measures were introduced to ensure that estimated bills for unmetered customers do not exceed what metered customers on the same feeder are charged for similar consumption levels.
NERC noted that the penalties represent 5 percent of the total amount overbilled the consumers during the assessed period under their coverage area.
Alongside the financial sanctions, the commission has directed all eight DisCos to issue credit refunds to affected customers by May 15, 2025, marking the conclusion of the April billing cycle.
Reiterating its dedication to protecting electricity consumers and upholding regulatory standards, NERC stated that it remains firmly opposed to unfair 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,” the regulator noted.
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 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,” it added.
NERC concluded by reaffirming its commitment “to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.”
