- The 11 DisCos over-billed around 7.1m unmetered consumers about N10.5bn between January and September 2023.
- NERC directed the DisCos to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024.
The Nigerian Electricity Regulatory Commission (NERC) has sanctioned the 11 Electricity distribution companies (DisCos) for non-compliance, with the capping of estimated bills for unmetered customers. NERC issued a N10.5 billion (around $7m) fine to the DisCos and ordered them to credit the overcharged electricity customers. The DisCos overcharged unmetered consumers by N10.5 billion (around $70 million) over nine months in 2023. The 11 DisCos over-billed around 7.1 million unmetered electricity consumers between January and September 2023.
In a press statement, the regulator stated, “The public may recall that in 2020, the commission issued the Order on Capping of Estimated Bills 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 Electricity Distribution Companies (“DisCos”) billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the commission.”
NERC issued an order to DisCos on non-compliance with the capping of estimated bills, specifying :
- Credit Adjustment to Customers: DisCos are to issue credit adjustments to all over-billed unmetered customers from January to September 2023 by the March 2024 billing cycle.
- Public Notice: NERC directed the DisCos to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024.
- Regulatory Sanctions: The Commission shall deduct a sum of N10,505 286,072 from the annual allowed revenues of the 11 DisCos during the next tariff review to deter future non-compliance with the energy caps approved by the commission.
Corroborating NERC’s stance, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has supported NERC penalising the Nigerian DisCos. FCCPC said, “This decisive measure aligns with the FCCPC’s mandate outlined in the Federal Competition and Consumer Protection Act, FCCPA 2018, particularly Section 17 (s), which empowers the Commission to protect consumers from obnoxious practices or unscrupulous exploitation by companies, firms, trade associations or individuals, and to demand redress on their behalf.”