The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eight electricity distribution companies (Discos) with fines totaling ₦628,031,583.94 for failing to comply with the monthly energy caps imposed on estimated billing for unmetered customers between July and September 2024.
The affected Discos include Abuja Electricity Distribution Company, Ikeja Electric, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, and Yola Electricity Distribution Company.
In a regulatory notice published on NERC’s official X (formerly Twitter) account, the commission stated that these Discos violated the provisions of the Capping Order, which limits the amount Discos can charge unmetered customers based on their average consumption in the same area.
By breaching these caps, the Discos billed customers higher amounts than allowed, thereby exploiting unmetered electricity consumers. The commission emphasized that this action undermines consumer protection and regulatory compliance within the Nigerian Electricity Supply Industry.
In addition to the monetary penalties, NERC has directed each company to provide credit adjustments to all affected customers by May 15, 2025. This measure aims to rectify the overbilling and ensure that customers are not unfairly charged for electricity consumption.
NERC reaffirmed its commitment to enforcing compliance and protecting consumers, stating that such sanctions are vital to maintaining integrity and fairness in the electricity distribution sector.
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Tags:
consumer protection
Discos
electricity distribution companies
electricity tariffs
energy caps
estimated billing
NERC
Nigerian electricity sector
overbilling
regulatory compliance