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NERC takes action against 11 DisCos for violating estimated billing caps

The order stipulates several actions, including credit adjustments to overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

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NERC takes action against 11 DisCos for violating estimated billing caps

The Nigerian Electricity Regulatory Commission (NERC) has imposed sanctions on eleven Electricity Distribution Companies (DisCos) for failing to comply with the capping of estimated bills for unmetered customers, according to a statement released by the commission in Abuja on Friday.

The commission highlighted that a recent review of DisCos’ billing practices for unmetered customers in 2023 exposed a disregard for the monthly energy caps set by the commission. NERC emphasized that the capping initiative aims to align estimated bills for unmetered customers with the actual consumption of metered customers on the same supply feeder.

In response to this non-compliance, NERC is taking measures to protect unmetered customers from arbitrary billing by DisCos. Pursuant to Section 34(1)(d) of the Electricity Act 2023, the commission issued the order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014).

READ ALSO: FG subsidises electricity with N135.23bn in Q2, 2023 – NERC

The order stipulates several actions, including credit adjustments to overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle. DisCos are also directed to publish the list of credit adjustment beneficiaries in two national dailies and on their websites by March 31, 2024.

As a regulatory measure, the commission announced that it will deduct a sum of N10,505,286,072 from the annual allowed revenues of the eleven DisCos during the next tariff review. This deduction serves as a deterrent against future non-compliance with the energy caps approved by the commission.

NERC reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).

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