NERC Slams N628m Fine on Eight DisCos Over Estimated Billing Violations

In a move to reinforce regulatory discipline and consumer protection in Nigeria’s electricity sector, the Nigerian Electricity Regulatory Commission (NERC) has imposed financial sanctions on eight electricity distribution companies (DisCos) over estimated billing violations.

The affected DisCos—Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola—were found guilty of overbilling unmetered customers, contrary to approved energy caps for the third quarter of 2024.

In a statement released by the Commission, NERC disclosed that the total fines imposed amounted to ₦628.03 million, representing five percent of the naira value of the excess charges levied by the DisCos between July and September 2024. The penalties were issued under Section 34(1)(d) of the Electricity Act, 2023, which empowers the Commission to enforce compliance and apply sanctions where necessary.

The Commission recalled that it had earlier issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) to ensure that unmetered customers are billed fairly. This order mandates that DisCos estimate bills for unmetered customers based on the average energy consumption of metered customers within the same supply cluster, known as feeders.

Despite the regulatory directive, NERC’s review of billing records during Q3 2024 exposed widespread noncompliance, with the sanctioned DisCos billing well above the stipulated energy caps. This, according to the Commission, was an exploitative practice that unfairly penalized customers lacking electricity meters.

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“The public may recall that the Commission issued monthly energy caps to align estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder,” NERC stated. “A review of DisCos’ billing… revealed non-compliance with these monthly energy caps.”

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In addition to the monetary penalty, NERC has directed the erring DisCos to implement commensurate credit adjustments for affected customers. These adjustments must reflect in their electricity accounts no later than May 15, 2025, effectively by the close of the April 2025 billing cycle.

This directive is aimed at not only rectifying the overcharges but also restoring consumer trust in the Nigerian electricity supply industry (NESI), which has often been plagued by billing-related disputes.

The regulator stressed that its actions are in line with its mandate to uphold fair treatment for electricity consumers, especially the vulnerable and unmetered, who often bear the brunt of systemic inefficiencies. NERC reaffirmed its resolve to ensure that all distribution companies adhere strictly to established billing standards.

As the Commission continues to push for full metering across all customer classes, it also emphasized the importance of transparency and accountability in utility service delivery. The latest sanctions serve as a clear warning to other operators within NESI that regulatory breaches will attract swift and substantial consequences.