By Ayomide Otitoju
The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N628.03 million on eight electricity distribution companies (DisCos) for violating the capped estimated billing regulations for unmetered customers.
In a statement issued Thursday, the commission said the penalties followed a review of billing practices by Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos between July and September 2024. The review revealed that the affected DisCos failed to comply with the monthly energy caps set by NERC to protect unmetered customers from excessive charges.
NERC noted that the fines—totaling N628,031,583.94—represent five percent of the total overbilling recorded during the period under review.
As part of the enforcement measures, the commission directed the sanctioned DisCos to provide credit adjustments to all affected customers by May 15, 2025, coinciding with the close of the April 2025 billing cycle.
“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently introduced monthly energy caps aimed at aligning estimated billing for unmetered customers with the actual consumption of metered customers on the same supply feeder,” NERC stated.
It added that the recent audit uncovered widespread non-compliance with these energy caps in the third quarter of 2024, prompting regulatory action to uphold transparency and fairness in billing practices.
“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry,” the statement concluded.
