NERC Slaps ₦628 Million Fine on Eight DisCos for Overbilling Unmetered Customers

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The Nigerian Electricity Regulatory Commission (NERC) has imposed a total fine of ₦628.03 million on eight electricity distribution companies for failing to comply with the approved limits on estimated billing for unmetered customers.

The companies penalized include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Electricity Distribution Companies.

This regulatory action, announced on Thursday, April 10, follows a comprehensive review of billing practices from July to September 2024. NERC found that these DisCos did not adhere to the monthly energy caps set by the commission, designed to prevent excessive charges for unmetered consumers.

The fines amount to five percent of the total overbilled amount for the third quarter of 2024. Additionally, NERC has directed the defaulting DisCos to issue credit adjustments to the affected customers by May 15, 2025, aligning with the conclusion of the April billing cycle.

Reaffirming its commitment to consumer protection, NERC emphasized its dedication to enforcing regulatory compliance. The commission reminded the public that its Capping of Estimated Bills Order (Order No: NERC/197/2020) was issued in 2020 to impose monthly caps on estimated bills, based on the average consumption of metered customers on the same supply feeder.

NERC reiterated that arbitrary billing practices would not be tolerated and assured continued monitoring of DisCos to ensure adherence to its regulations.

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