The Nigerian Electricity Regulatory Commission (NERC) has slammed eight electricity distribution companies (DisCos) with a total fine of N628.03 million for overbilling unmetered customers in violation of regulatory guidelines.
The sanctioned DisCos are Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
In a statement released Thursday, NERC said the penalties were imposed following a review of billing practices for the third quarter of 2024 (July–September). The assessment revealed that the DisCos failed to comply with the Commission’s monthly energy caps, which are intended to ensure unmetered customers are not billed more than the average usage of metered customers on the same feeder.
The sanctions, issued under Section 34(1)(d) of the Electricity Act 2023, amount to 5% of the total overbilled revenue during the review period.
In addition to the fines, NERC has directed all affected DisCos to credit overbilled customers with the appropriate amount by May 15, 2025, which marks the end of the April billing cycle.
“The Commission issued the Capping of Estimated Bills Order in 2020 (Order No: NERC/197/2020) to protect unmetered customers from arbitrary billing. These caps are reviewed monthly to reflect actual usage patterns,” NERC stated.
The Commission reiterated its commitment to enforcing compliance and protecting consumers within the electricity sector.
“This enforcement action underscores NERC’s zero tolerance for billing abuses and its continued drive to uphold fair service delivery,” the statement concluded.
