Nigerian Electricity Regulatory Commission, NERC, has imposed a ₦628 million fine on eight electricity distribution companies for breaching estimated billing regulations between July and September 2024.
According to the commission, the companies failed to comply with the monthly energy caps meant to protect unmetered customers from excessive charges. The infractions occurred in the third quarter of 2024 and affected customers across different regions.
In a statement posted on its official X (formerly Twitter) account, NERC revealed that the sanctioned companies include major players such as Abuja Electricity Distribution Company, Ikeja Electric, Eko Electricity Distribution Company, Enugu Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, and Yola Electricity Distribution Company.
These firms were found to have billed unmetered customers above the thresholds set by the commission, in clear violation of the capping order established to ensure fairness in billing.
NERC referenced the 2020 Order on Capping of Estimated Bills (Order No: NERC/197/2020), which aims to align the charges for unmetered customers with the average consumption of metered users within the same supply feeder.
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The regulator stated that a detailed review showed that the companies had billed customers far above the approved monthly energy caps, thereby exploiting consumers who lack metering infrastructure.
As a corrective measure, the commission has directed each of the electricity distribution companies to issue credit adjustments to all customers affected by the overbilling.
These refunds are expected to be processed and reflected in the customers’ accounts by May 15, 2025, which marks the end of the April billing cycle.
While NERC did not disclose how much each individual company is required to pay, it confirmed that the ₦628 million total fine represents five percent of the naira value of the gross overbilling.
The commission emphasized that this enforcement action underscores its commitment to consumer protection and the need for strict adherence to regulatory standards within the Nigerian Electricity Supply Industry.
NERC also reaffirmed its resolve to monitor billing practices and ensure that all distribution companies operate transparently and accountably.
Crediblenewsng.com
