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NERC Fines Eight DisCos N628 Million For Violating Order On Capping Estimated Bills for Unmetered Customers

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The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eight power Distribution Companies (DisCos) with a fine of N628,031,583.94 for violating order on capping estimated bills for unmetered customers.

The eight noncompliant energy capping DisCos are Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, according to a statement by NERC management on Thursday.

NERC also directed the defiant DisCos to issue commensurate credit adjustments to all customers affected by the overbilling.

The purpose of capping is to curb crazy bills (over billing) being sent to unmetered customers and to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

According to NERC, “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 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% 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.”

NERC further reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI)

 

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