N628M FINE FOR 8 DISCOS OVER UNMETERED CUSTOMERS CHEATING
NERC fines eight electricity distribution companies N628m for overbilling unmetered customers from July to September 2024.
*Affected DisCos*
– Abuja Electricity Distribution Company
– Eko Electricity Distribution Company
– Enugu Electricity Distribution Company
– Ikeja Electricity Distribution Company
– Jos Electricity Distribution Company
– Kaduna Electricity Distribution Company
– Kano Electricity Distribution Company
– Yola Electricity Distribution Company
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*Violation Details*
The DisCos breached NERC’s monthly energy caps for unmetered customers. The commission reviewed billing practices and found non-compliance.
*Penalty and Adjustments*
The DisCos must pay the fine and provide credit adjustments to overbilled customers by May 15, 2025.
The statement reads: “Pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), the commission has sanctioned eight (8) Electricity Distribution Companies (“DisCos”) – Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, for failing to fully comply with the monthly energy caps issued by the commission between July – September 2024 (2024/Q3).
“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 DisCos billing of unmetered customers for July – September 2024 (2024 Q3) revealed non-compliance with the monthly energy caps issued by the commission.
“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 (N628,031,583.94), which is equivalent to 5 per cent of the naira value of the gross overbilling for the period under review.
“The commission has also mandated the Discos to issue commensurate credit adjustments to all customers affected by the overbilling by 15th May 2025 – the end of the April 2025 billing cycle.”
