The Nigerian Electricity Regulatory Commission (NERC) has penalised eight electricity distribution companies (DisCos) for failing to adhere to the monthly energy caps imposed on estimated billing for unmetered customers.
The infractions, which occurred between July and September 2024, highlight persistent concerns around regulatory compliance within the Nigerian Electricity Supply Industry (NESI).
According to a regulatory notice published on NERC’s X (formerly Twitter) account on Thursday, the affected DisCos include Abuja Electricity Distribution Company (AEDC), Ikeja Electric (IKEDC), Eko Electricity Distribution Company (EKEDC), Enugu Electricity Distribution Company (EEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electric, Kano Electricity Distribution Company (KEDCO), and Yola Electricity Distribution Company (YEDC).
NERC notice read, in part, “The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“A review of the DisCos billing of unmetered customers for July – September 2024 (2024 Q3) revealed non-compliance with the monthly energy caps issued by the Commission,” NERC noted.
NERC stated that the distribution companies 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 amounts higher than allowed, thereby exploiting unmetered electricity consumers.
The Commission has imposed a combined fine of over N628 million on the eight DisCos. In addition to the monetary penalties, NERC directed each company to provide credit adjustments to all affected customers by May 15, 2025.
Breakdown of penalties
While NERC did not immediately release a full breakdown of how much each DisCo is to pay, the Commission clarified that the credit adjustments must reflect on customers’ accounts in a verifiable and auditable manner.
The fines, it added, were calculated based on the volume of excessive billing and the duration of the infractions.
This enforcement action is part of NERC’s broader regulatory efforts to curb estimated billing abuse and fast-track the deployment of prepaid meters under the National Mass Metering Programme (NMMP) and other metering initiatives.
What this means for consumers
Affected customers can expect a reduction in their subsequent electricity bills as the DisCos apply the necessary credit adjustments.
NERC has advised customers to monitor their bills closely and report any discrepancies through the Commission’s complaints channels or their respective DisCos’ customer care units.
