NERC Slaps N628 Million Fine on 8 DisCos for Overbilling Unmetered Customers

NERC

The Nigerian Electricity Regulatory Commission (NERC) has imposed a N628 million fine on eight power distribution companies (DisCos) for failing to comply with the capping of estimated bills for unmetered customers in the third quarter of 2024.

In a statement issued yesterday, NERC named the affected DisCos as Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola. The regulator stated that these companies overbilled customers, violating the energy caps established for the period between July and September 2024.

The fines were levied in accordance with Section 34(1)(d) of the Electricity Act of 2023, following a review of the billing practices for unmetered customers during the specified period.

NERC had introduced the Capping of Estimated Bills Order (NERC/197/2020) in 2020, which set limits on estimated billing for unmetered customers, aligning them with the measured consumption of metered customers on the same supply feeder. However, the review of the DisCos' billing practices in 2024 revealed non-compliance with these regulations.

The total fine of N628.03 million represents 5 percent of the gross overbilling by the DisCos during the period under review. The affected DisCos have been instructed to issue credit adjustments to the affected customers by May 15, 2025, the end of the April 2025 billing cycle.

NERC reiterated its commitment to regulatory compliance and ensuring the protection of electricity consumers within Nigeria’s electricity supply industry (NESI). The regulator’s action highlights its ongoing efforts to address issues of billing irregularities and ensure fair treatment for all customers.

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