NERC sanctions Abuja, Ikeja, Enugu, Five Others with N628m fine

The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eight distribution companies (Discos) with a fine of N628 million for over-billing their customers.

Such act, according to the commission, is in violation of the agency’s order on capping of estimated bills for unmetered customers.

The affected Discos sanctioned for non-compliance in the July to September 2024 billing circle include: Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Discos, according to a statement issued by NERC, yesterday.

The commission also directed the defaulting Discos to issue commensurate credit adjustments to all customers affected by the overbilling.

NERC had in 2020 issued the Order on Capping of Estimated Bills 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.

 “Pursuant to section 34(1)(d) of the Electricity Act 2023 (EA 2023), the Commission has sanctioned eight 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 – September 2024 (2024/Q3).

“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 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 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.”

NERC further reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).

Recall over N12.5 billion was over-billed during the period by the distribution companies.