The Nigerian Electricity Regulatory Commission has imposed a total fine of over N628 million on eight Electricity Distribution Companies (DisCos) for breaching the capped billing regulations for unmetered customers.
The affected DisCos include the Abuja Electricity Distribution Company, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
NERC found that these companies had failed to comply fully with the Commission’s approved monthly energy caps for the period between July and September 2024 (Q3 2024).
As previously reported, NERC introduced the capping order in 2020 to protect unmetered consumers from arbitrary billing practices, which have been a significant source of complaints nationwide.
In a statement released on Wednesday, the Commission explained that the sanctions were in accordance with Section 34(1)(d) of the Electricity Act 2023.
The Commission’s review revealed that the DisCos had overbilled unmetered customers, violating Order No: NERC/197/2020, which limits estimated bills to the average usage of metered customers on the same feeder.
The entire fine of N628,031,583.94 is equivalent to 5% of the gross overbilling for the relevant period.
Aside from the financial penalty, NERC has instructed the affected DisCos to issue credit adjustments to all impacted customers.
“The credits are to be reflected by May 15, 2025, marking the end of the April 2025 billing cycle,” the Commission stated.
“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry,” the statement concluded.
