NERC Fines 11 DISCOs ₦10.5bn For Overbilling Of Unmetered Customers

NERC Sanctions Eleven (11) DisCos Over Non-Compliance with Capping of Estimated Bills for Unmetered Customers

PRESS RELEASE- 08 FEBRUARY, 2024

NERC Sanctions Eleven (11) DisCos Over Non-Compliance with Capping of Estimated Bills for Unmetered Customers

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 bils 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.

In response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”wink, has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following:

i. Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

ii. Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31* March 2024.

iii. Regulatory Sanctions: The Commission shall deduct a sum of 10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.

The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.

Signed

Management