In a move to enforce stricter adherence to regulatory guidelines, the Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N628 million on eight Distribution Companies (DisCos) for failing to comply with directives on capping estimated bills for unmetered customers. This action follows a comprehensive review of the DisCos’ billing practices, which revealed significant discrepancies and overbilling of consumers.
The fine is part of NERC’s broader efforts to protect consumers from arbitrary billing and ensure that DisCos adhere to the service-based tariff framework. The regulatory body has been actively working to address issues of overbilling, which have been a longstanding concern for electricity consumers in Nigeria. The sanctions are designed not only to penalize non-compliance but also to compel DisCos to enhance their service delivery and align their billing practices with approved energy caps.
NERC has directed the affected DisCos to refund overbilled amounts to customers by May 15, 2025, as part of its commitment to safeguarding consumer rights. This directive underscores the Commission’s resolve to ensure fairness and transparency in the electricity distribution sector. The move is expected to improve customer satisfaction and reinforce trust in the regulatory framework governing the power sector.
This enforcement action aligns with the Electricity Act 2023, which empowers NERC to take decisive measures against non-compliance. It also reflects the government’s broader strategy to reform the power sector, focusing on improved efficiency, reliability, and consumer protection. As the electricity distribution landscape continues to evolve, such regulatory interventions are crucial for maintaining a balanced and equitable market.
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