Skip to main content

Nigeria Sanctions 11 Electricity Distribution Companies For Overbilling Unmetered Customers, To Deduct N10.5Million From Firms’ Income

power
February 15, 2024

NERC noted 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.

 

The Nigerian Electricity Regulatory Commission (NERC) says it has sanctioned 11 electricity distribution companies (DisCos) over non-compliance with the capping of estimated bills for unmetered customers.

NERC noted 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 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.

 

A statement released by the NERC management on Thursday said, “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”), 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 31st March 2024.

iii. Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 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,” it added. 

 

Topics
Energy