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Home News Business

NERC Slams N628 Million Fine on Eight DisCos Over Overbilling Unmetered Customers

Celestine Umunnakwe by Celestine Umunnakwe
April 10, 2025
in Business
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The Nigerian Electricity Regulatory Commission (NERC) has imposed financial penalties totaling over N628 million on eight electricity distribution companies for breaching the rules on estimated billing for unmetered customers.

In a statement released on Thursday, NERC named Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Electricity Distribution Companies as defaulters in a review that covered the third quarter of 2024.

The commission found that these DisCos failed to comply with the energy caps set for July to September 2024, issuing inflated estimated bills to customers without meters. According to NERC, the fine—amounting to N628,031,583.94—represents five percent of the total overbilling recorded during that period.

“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,” the statement read.

NERC also directed the affected companies to rectify the overcharges by issuing credit adjustments to all impacted customers by May 15, 2025, coinciding with the conclusion of the April billing cycle.

It further emphasized that the commission remains committed to protecting consumers and ensuring strict adherence to regulations in the Nigerian electricity sector.

“The commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry,” it added.

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