Nigeria Sanctions 11 Electricity Distribution Companies For Overbilling Unmetered Customers

The Nigerian Electricity Regulatory Commission (NERC) says it has sanctioned 11 electricity distribution companies (DisCos) over non-compliance with the capping of estimated bills for unmetered customers.

NERC noted 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 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.

 

A statement released by the NERC management on Thursday said, “In response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following:

“i. Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

“ii. Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31st March 2024.

iii. Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.”

“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry,” it added.