March 2, 2024
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Nigeria Sanctions 11 Electricity Discos for Violating Regulatory Requirements

The Nigerian Electricity Regulatory Commission (NERC) sanctioned 11 electricity distribution companies (DisCos) for failing to comply with the capping of estimated bills for unmetered customers.

In a press statement issued on Thursday, NERC reiterated its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).

NERC explained that it had introduced measures, including monthly energy caps, to align estimated bills for unmetered customers with the actual consumption of metered customers on the same supply feeder, as per Order No: NERC/197/2020 issued in 2020.

However, a review of the billing practices of the Electricity Distribution Companies (“DisCos”) for unmetered customers in 2023 revealed non-compliance with the monthly energy caps set by the Commission.

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To address this issue and protect unmetered customers from arbitrary billing, NERC, under Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014).

The commission stated that this stipulates the following:

1. Credit Adjustment to Customers: DisCos are required to issue credit adjustments to all overbilled unmetered customers for the period from January to September 2023 by the billing cycle of March 2024.

2. Public Notice: DisCos must publish the list of credit adjustment beneficiaries in two national newspapers and on their website by March 31, 2024.

3. Regulatory Sanctions: The Commission will deduct a sum of $10,505,286,072 from the annual allowed revenues of the eleven DisCos during the next tariff review to deter future non-compliance with the energy caps approved by the Commission.

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