In a strong move to curb exploitation of electricity consumers, the Nigerian Electricity Regulatory Commission (NERC) has penalized eight electricity distribution companies (DisCos) over violations related to estimated billing practices.
The regulatory body announced on Thursday that the affected DisCos — Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola — collectively racked up a N628.03 million fine for breaching established caps on estimated billing for unmetered customers during Q3 2024 (July–September).
According to NERC, the DisCos issued inflated estimated bills to customers without meters, defying monthly energy caps designed to ensure billing fairness.
These caps are meant to align charges for unmetered users with the actual consumption of metered consumers on the same power feeders.
The Commission cited Section 34(1)(d) of the Electricity Act, 2023, as the legal basis for the sanctions.
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It noted that the fine represents 5% of the total naira value of the overbilling recorded in the reviewed quarter.
“This action follows a detailed review of billing records, which clearly revealed systemic non-compliance with the monthly energy caps,” NERC stated.
As part of the enforcement, NERC has directed all eight DisCos to make credit adjustments to affected customer accounts, ensuring refunds are applied no later than May 15, 2025 — the end of the April billing cycle.
The Commission reiterated its commitment to holding operators accountable and protecting consumers within the Nigerian Electricity Supply Industry (NESI).
The move is expected to offer some relief to thousands of Nigerian households that have long complained about arbitrary estimated billing in the absence of prepaid meters.
While the fines may sting for the DisCos, consumers and advocacy groups are hailing NERC’s action as a step toward transparency and fairness in the power sector.