NERC Sanctions 11 DisCos over Non-Compliance with Capping of Estimated Bills for Unmetered Customers

The Nigerian Electricity Regulatory Commission (NERC) has placed a heavy sanction on all eleven electricity Distribution Companies (DisCos) with a total fine of N10.5 billion for failing to comply with the monthly capping of estimated bills, to be deducted from their annual allowed revenues during the next tariff review.

This was contained in a statement released by the management of the NERC dated February 8, 2024, and released to the media and obtained by Advisors Reports on Friday.

According to NERC, in 2020, the Order on Capping of Estimated Bills (Order No” NERC/197/2020) was issued.

It stated that subsequently a 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 was also issued to the DisCos.

NERC said, “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.

The electricity regulatory authority has therefore in a bid to safeguard unmetered customers from arbitrary billing by DisCos, and in pursuant to 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).

Furthermore, the Commission has in compliance with the capping order, instructed the DisCos to issue credit adjustment order to all overbilled unmetered customers for the period of January to September 2023 by the March 2024 billing cycle.

It also instructed the 11 DisCos to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31 March, 2024.

The Commission therefore stated that a sum of N10,505, 286,072 shall be deducted from the annual allowed revenues of the eleven DisCos during the next tariff review, to deter future non-compliance with the energy.

The NERC has therefore reaffirmed its commitment to regulatory compliance and consumers protection within the Nigerian Electricity Supply Industry.


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