The Nigerian Electricity Regulatory Commission (NERC) has imposed sanctions on eleven electricity Distribution Companies for non-compliance with the directive on capping of estimated bills.
NERC had in 2020 issued an order which required the DisCos to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
However, NERC observed that contrary to compliance with the order, a review of the billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.
Following the non-compliance, NERC has resorted to sanction the DisCos through Order No: NERC/2024/004-014, which among others stipulates:
Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website not later than 31st March 2024.
Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 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.
The full text of a statement by NERC reads:
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 (“DisCos”) 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, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following:
i. Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled 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 not later than 31st March 2024.
iii. Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 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.
The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.
Signed
Management
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