In a bold move to reinforce consumer protection and regulatory compliance, the Nigerian Electricity Regulatory Commission (NERC) has sanctioned eight electricity distribution companies (DisCos) for violating the cap on estimated billing for unmetered customers.
The affected companies — Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos — were collectively fined ₦628.03 million for overcharging customers between July and September 2024, a period covering the third quarter of last year.
According to a statement released on Thursday, NERC found that the DisCos had breached its guidelines by billing unmetered customers above the limits set in its monthly energy cap orders.
“The Commission’s review of billing practices during Q3 2024 revealed widespread non-compliance with the approved energy caps,” NERC stated, referencing its 2020 Order on Capping of Estimated Bills (Order No: NERC/197/2020).
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The order was designed to ensure fairness by aligning estimated bills for unmetered users with the actual consumption of metered customers on the same feeder.
The penalties, which amount to 5 percent of the naira value of the total overbilling, were issued under Section 34(1)(d) of the Electricity Act, 2023, which empowers the Commission to penalize licensees for regulatory breaches.
In addition to the financial sanctions, NERC has ordered the DisCos to make “commensurate credit adjustments” to all affected customers by May 15, 2025, coinciding with the end of the April billing cycle.
The regulator reaffirmed its zero-tolerance stance on exploitative billing practices, stating that it remains fully committed to safeguarding the interests of electricity consumers across the Nigerian Electricity Supply Industry (NESI).
“We are committed to ensuring transparency, fairness, and accountability in electricity billing,” NERC said, warning that further violations will attract stiffer penalties.
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