NERC sanctions Discos over arbitrary billing


Electricity distribution companies, DISCOs

By Constance Athekame

The Nigerian Electricity Regulatory Commission (NERC), has imposed sanctions on the eleven Electricity Distribution Companies (DisCos) over their failure to comply with its directive on capping of estimated bills for customers who are not yet metered.

NERC, in a statement issued in Abuja on Friday said the sanctions were imposed following a review of the DisCos billing of unmetered customers for 2023.

According to the statement, the review revealed that the DISCOs had failed to comply with the monthly energy caps issued by the commission in 2020 to curb arbitrary billing of electricity consumers. .

NERC noted in the statement that in 2020, it issued an Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps aimed at aligning the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

The commission said that in response to the non-compliance, it was safeguarding unmetered customers from arbitrary billing by the DisCos.

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“The Commission in 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:

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

“Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website not later than March 31, 2024.

“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,” it said.

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


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