NERC Slaps N10.5bn Fine on DisCos for Overbilling Customers

In a bold move to address the issue of overbilling by electricity distribution companies (DisCos), the Nigerian Electricity Regulatory Commission (NERC) has imposed a staggering N10.5 billion fine on the eleven DisCos for their non-compliance with the capping of estimated bills.

The decision was made public on February 13, 2024, by Businessday NG, with an article penned by Cynthia Egboboh.

The NERC’s action comes as a response to the growing concerns of customers who have been subjected to inaccurate and inflated bills for their electricity consumption.

The NERC has been working to implement a more transparent and fair billing system for electricity consumers in Nigeria.

To achieve this, the commission introduced a capping mechanism for estimated bills, aiming to align the estimated bills of unmetered customers with the measured consumption of metered customers on the same supply feeder.

However, a review of the DisCos’ billing of unmetered customers for 2023 revealed a high level of non-compliance with the monthly energy caps issued by the commission.

In an effort to protect customers from arbitrary billing practices, the NERC has taken this decisive step to enforce the capping of estimated bills and deter future non-compliance.

As a result of this enforcement action, DisCos will be required to issue credit adjustments to all overbilled unmetered customers for the period between January and September 2023 by the March 2024 billing cycle.

This move is expected to provide much-needed relief to millions of customers who have been overcharged for their electricity consumption.

NERC’s decision to impose a substantial fine on the DisCos underscores the importance of adhering to the regulatory framework and promoting transparency in the electricity sector.

It is hoped that this action will serve as a wake-up call for the DisCos to improve their billing practices and provide a more equitable service to their customers.

As the electricity sector in Nigeria continues to evolve, it is crucial for both the regulatory authorities and the DisCos to work together to ensure that customers receive fair and accurate billing for their electricity consumption.