The Nigerian Electricity Regulatory Commission (NERC) has fined eight Electricity Distribution Companies (DisCos) N628.03 million for non-compliance with the capping of estimated billing for unmetered customers.
The affected Discos are: Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Electricity Distribution Companies. The sanction is pursuant to Section 34(1)(d) of the Electricity Act 2023 (EA 2023).
The Commission, in a release on Thursday, said the sanction followed a review of billing practices between July and September 2024, which revealed that the affected DisCos failed to adhere to monthly energy caps issued by NERC.
NERC stated, “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 DisCos’ billing of unmetered customers for July – September 2024 (2024/Q3) revealed non-compliance with the monthly energy caps issued by the Commission.”
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The caps were designed to align estimated bills for unmetered customers with the consumption levels of metered customers on the same feeder.
According to the regulator, the fines represent five per cent of the gross overbilling during the period under review.
In addition to financial penalties, NERC also mandated the affected DisCos to provide credit adjustments to all overbilled customers by May 15, 2025, coinciding with the end of the April billing cycle.
NERC emphasised its commitment to consumer protection and regulatory compliance within Nigeria’s electricity industry, reiterating its stance against arbitrary billing practices.
“The non-compliant DisCos have been sanctioned to pay fines amounting to six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo (N628,031,583.94), which is equivalent to 5 percent of the naira value of the gross overbilling for the period under review.
“The Commission has also mandated the DisCos to issue commensurate credit adjustments to all customers affected by the overbilling by 15th May 2025 – the end of the April 2025 billing cycle.
“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry”, the Commission stated.
State of Metering
Despite the ongoing efforts to address the metering situation in Nigeria, the acceleration rate remains below 50%, indicating that more needs to be done.
As of December 31, 2024, only 46.6 percent of registered electricity customers were metered, leaving a significant gap of approximately 7.2 million unmetered customers. This has led to issues like estimated billing, which many consumers find frustrating.
To tackle this, the Federal Government has launched initiatives like the Presidential Metering Initiative (PMI) and the Distribution Sector Recovery Program (DISREP). These programs aim to deploy millions of meters over the next few years.
For context, the first batch of 75,000 meters under the International Competitive Bid (ICB1) is expected this month, with an additional 200,000 meters arriving in May, according to the Federal Government.
While progress is being made, the pace of deployment has been slower than desired. The government is working on structured financing and partnerships to accelerate the process, aiming to install two million meters annually for the next five years.
