The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty N10.5 billion fine on 11 electricity distribution companies (DisCos) for failing to comply with regulations on the capping of estimated bills for unmetered customers. This action follows a review of billing practices between January and September 2023, which revealed widespread non-compliance with monthly energy caps designed to protect consumers from arbitrary charges.
The affected DisCos include Abuja Electricity Distribution Company (AEDC), Ikeja Electric (IKEDC), Eko Electricity Distribution Company (EKEDC), and others. NERC’s Capping Order, introduced in 2020, aims to align estimated bills for unmetered customers with the actual consumption levels of metered customers on the same supply feeder.
As part of the penalty, NERC has directed these companies to issue credit adjustments to overbilled customers by March 2024. Additionally, the list of beneficiaries must be published in national newspapers and on the DisCos’ websites by March 31, 2024. To deter future violations, the fines will be deducted from the annual allowed revenues of these companies during the next tariff review.
The Federal Competition and Consumer Protection Commission (FCCPC) has also expressed support for NERC’s actions, emphasizing the importance of holding DisCos accountable for unethical practices.
Consumers are encouraged to monitor their bills closely and report discrepancies through official complaints channels as NERC continues its efforts to ensure fair billing practices and promote metering initiatives across the country.
