Nigeria: NERC Sanctions Eleven Discos For Failing To Comply With Regulatory Rules


The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eleven electricity distribution companies due to their non-compliance with capping of estimated bills for unmetered customers.

The NERC revealed this in a press statement on Thursday, February 8, 2024, which also reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).

“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,” NERC said.

It revealed that 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).

NERC stated that this stipulates the following: 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 no later than 31% March 2024,” NERC added.

“Regulatory Sanctions: The Commission shall deduct a sum of $10,505,286,072 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.”