The Nigerian Electricity Regulatory Commission (NERC) has taken action against eight power distribution companies for billing customers more than allowed under the country’s electricity rules. According to a statement released on Thursday, the companies violated the limits set for estimating electricity bills for users who do not yet have meters.
The affected companies include Abuja Electricity Distribution Company, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos. These firms were found to have billed customers without meters more than what was approved by NERC for the third quarter of 2024 — from July to September.
NERC explained that the penalties are based on Section 34(1)(d) of the Electricity Act 2023. This section gives the commission the power to punish companies that do not follow its rules.
In 2020, NERC introduced a regulation to stop unfair billing of customers without meters. The rule, known as the “Order on Capping of Estimated Bills” (Order No: NERC/197/2020), was created to make sure estimated bills for unmetered customers do not go higher than what similar metered customers pay on the same power line.
Each month, NERC issues a cap on how much these customers can be charged.
But a recent review showed that many of the DisCos ignored these monthly caps between July and September 2024. NERC stated, “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.”
As a result of this violation, NERC has fined the eight companies a total of N628.03 million. This amount equals five percent of the extra charges that customers were made to pay during the period in question.
The regulator also directed that these companies give back the overcharged amounts to the affected customers. These credit adjustments must reflect in their bills by May 15, 2025 — the end of the April billing cycle.
NERC noted that it will continue to ensure that electricity providers follow all rules that protect the interests of customers in the Nigerian Electricity Supply Industry (NESI).
