The Nigerian Electricity Regulatory Commission has penalised eight electricity distribution companies for failing to adhere to the monthly energy caps imposed on estimated billing for unmetered customers.
It said the infractions occurred between July and September 2024.
According to a regulatory notice published on NERC’s X (formerly Twitter) account on Thursday, the affected DisCos include Abuja Electricity Distribution Company, Ikeja Electric Distribution Company, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, and Yola Electricity Distribution Company.
It noted that these DisCos have been fined over N628m. In addition to the monetary penalties, NERC directed each company to provide credit adjustments to all affected customers by May 15, 2025.
The statement reads, “Pursuant to Section 34(1)(d) of the Electricity Act 2023, the commission has sanctioned eight (8) Electricity Distribution Companies (‘DisCos”) – Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola – for failing to fully comply with the monthly energy caps issued by the commission between July and September 2024 (2024/Q3).”
NERC stated that the distribution companies violated the provisions of the Capping Order, which limits the amount DisCos can charge unmetered customers based on their average consumption in the same area. By breaching these caps, the DisCos billed customers amounts higher than allowed, thereby exploiting unmetered electricity consumers.
“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 the 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 per cent 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 statement added.
While NERC did not immediately release a full breakdown of how much each Disco is to pay, the commission said the sanction is vital to ensure regulatory compliance and consumer protection in the Nigerian Electricity Supply Industry.
