NERC Imposes Heavy Sanctions on 11 Discos for Non-Compliance with Billing Regulations
The Nigerian Electricity Regulatory Commission (NERC) has levied a substantial fine of N10.5 billion on eleven electricity Distribution Companies (DisCos) for their failure to adhere to the monthly capping of estimated bills. This sanction comes as a response to their non-compliance with regulations aimed at protecting unmetered customers from arbitrary billing practices.
According to a statement released by NERC’s management on February 8, 2024, and obtained by Advisors Reports, the regulatory body cited the issuance of Order No: NERC/197/2020 in 2020, which mandated the capping of estimated bills. Subsequently, monthly energy caps were established to align the bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
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NERC’s review of DisCos’ billing practices for unmetered customers in 2023 revealed a consistent pattern of non-compliance with the established energy caps. In response, NERC invoked Section 34(1)(d) of the Electricity Act 2023 and issued Order No: NERC/2024/004-014, aimed at ensuring compliance and protecting consumers.
In line with this order, NERC instructed the DisCos to issue credit adjustments to overbilled unmetered customers for the period of January to September 2023 by the billing cycle of March 2024. Additionally, the DisCos are mandated to publish the list of credit adjustment beneficiaries in two national dailies and on their websites by March 31, 2024.
To deter future non-compliance, NERC announced that a total of N10,505,286,072 would be deducted from the annual allowed revenues of the eleven DisCos during the next tariff review. This measure underscores NERC’s commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry
