NERC Slams N628m Fine on 8 DisCos Over Illegal Overbilling

|By Adejumo Adekunle-

Customers to Receive Credit Adjustments by May 15 Deadline
Commission Cites Breach of 2020 Energy Capping Order

The Nigerian Electricity Regulatory Commission (NERC) has slammed eight electricity distribution companies—Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola—with a hefty fine of ₦628 million for breaching energy caps on unmetered customers between July and September 2024.

In a statement released on its official X handle Thursday, NERC said the sanction was issued in line with Section 34(1) of the Electricity Act, 2023, after a review of billing activities in the third quarter of 2024.

The commission revealed that the DisCos flagrantly ignored the Order on Capping of Estimated Bills (Order No: NERC/197/2020) by issuing bills that far exceeded the approved limits for unmetered customers. The fines, totaling ₦628,031,583.94, represent 5% of the naira value of the gross overbilling recorded within the period under review.

“The non-compliant DisCos have been sanctioned to pay fines amounting to six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo. The Commission has also mandated the DisCos to issue commensurate credit adjustments to all affected customers by May 15, 2025,” the statement read.

NERC further mandated all eight distribution companies to refund customers affected by the overbilling no later than May 15, 2025, which marks the end of the April billing cycle.

A look into NERC’s Q3 2024 report showed that out of 13.3 million registered electricity customers, Nigeria still has over 7.1 million unmetered users, raising further concerns over transparency and fairness in billing practices.

This is not the first time the regulator is cracking down on DisCos for such violations. In September 2023, NERC also imposed sanctions on several DisCos for similar overbilling infractions.