February 10, (THEWILL) – The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eleven Distribution Companies (DisCos) over failure to comply with the capping of estimated bills for unmetered customers.
In a statement on Friday, the commission said it “shall deduct a sum of $10,505,286,072 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.”
While reaffirming its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI), NERC said the Discos would pay about 10 per cent of the amount they over-billed their customers between January and September 2023.
In separate orders to the Discos, it was established that the power firms over-billed their customers to the tune of about N105bn in nine months.
Abuja Disco, for instance, overbilled its customers without meters to the tune of N17.874bn, while Eko Disco over-billed its unmetered customers by N13.137bn.
Port Harcourt Disco overbilled its customers without meters by N14.187bn, as Kaduna Disco overbilled its customers by N1.145bn.
The regulator ordered the Discos to refund the cheated customers in full and to ensure compliance in the future, stressing that to deter future occurrences, a 10 per cent fine had been imposed on the utilities.
In its notice, the regulator said, “The public may recall that in 2020, the commission issued the order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps, which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“A review of the electricity distribution companies’ billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the commission.”
In response to this and in a bid to safeguard unmetered customers from arbitrary billing by Discos, the commission said pursuant to Section 34(1)(d) of the Electricity Act 2023, it had issued the order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-01 4).
The order stipulates the following: “i. Credit adjustment to customers: Discos are to issue credit adjustments to all over-billed unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
“ii. Public notice: Discos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024.
“III. Regulatory sanctions: The commission shall deduct a sum of N10,505,286,072 from the annual allowed revenues of the 11 Discos during the next tariff review to deter future non-compliance with the energy caps approved by the commission.”
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