The Nigerian Electricity Regulatory Commission (NERC) has imposed fines totaling N9.11 billion on the country’s 11 electricity distribution companies (DisCos) for overbilling unmetered customers through estimated billing practices.
The penalties were announced in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO), released by NERC on Friday.
While NERC kept the electricity tariff for Band A customers unchanged at N209 per kilowatt-hour (kWh) for September 2024, the commission took action against DisCos for failing to comply with previous regulations aimed at capping estimated billing for unmetered customers.
Abuja Electricity Distribution Company (AEDC) received the largest fine, amounting to N1.69 billion, followed by Eko and Ikeja DisCos, each fined N1.41 billion. Other fines include N1.33 billion for Jos Disco, N1.16 billion for Port Harcourt Disco, N804 million for Benin Disco, and N310 million for Enugu Disco. Ibadan, Kaduna, Yola, and Kano DisCos were also penalized, with fines ranging from N20 million to N150 million.
The supplementary order, signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, came after a thorough investigation into the DisCos’ billing practices.
The commission noted that this action is part of efforts to ensure DisCos improve service delivery and adhere to service-based tariffs. Additionally, DisCos are now required to publish explanations on their websites within 24 hours if they fail to maintain the committed level of service for Band A feeders for more than two consecutive days.
In a separate development, NERC approved a monthly subsidy of N26.4 billion for customers under the AEDC franchise. The tariffs for Bands B to E have remained unchanged since December 2022, in line with the federal government’s policy on electricity subsidies. This policy ensures that customers in these bands continue to benefit from frozen tariffs while the government explores further policy directions.
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