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NERC sanctions eight DisCos for overbilling unmetered customers, mandates refunds

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In a decisive effort to protect consumers, the Nigerian Electricity Regulatory Commission (NERC) penalized eight Electricity Distribution Companies (DisCos) for violating billing regulations.

On April 10, 2025, the Commission announced these sanctions via its official Twitter handle, specifically targeting Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos.

These firms failed to comply with monthly energy caps set between July and September 2024.

Consequently, the caps aimed to align estimated bills with the actual consumption patterns of metered customers on shared feeders.

Thus, this action underscores NERC’s commitment to enforcing compliance and ensuring fair billing practices in the electricity sector.

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Following a detailed review, NERC discovered significant billing discrepancies during the third quarter of 2024, leading to unjust overcharges.

Consequently, the Commission imposed fines totaling ₦628 million, representing 5% of the excess amounts billed.

Additionally, it directed the DisCos to issue credit adjustments to affected customers by May 15, 2025, coinciding with the April billing cycle closure.

This measure aims to refund overpayments promptly, mitigating financial harm to consumers.

NERC emphasized its commitment to enforcing compliance and shielding customers from exploitative practices.

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By holding the DisCos accountable, the regulator reinforces its stance on transparency and equity in Nigeria’s electricity sector.

The sanctions underscore NERC’s resolve to ensure service providers adhere strictly to stipulated guidelines, fostering trust in the market.

Moreover, the Commission warned of stricter penalties for future violations, urging DisCos to accelerate metering initiatives to curb estimated billing disputes.

This action aligns with broader efforts to modernize the power sector and enhance service delivery.

Customers welcomed the decision, citing prolonged frustrations over arbitrary charges and opaque billing systems.

As regulatory oversight intensifies, NERC’s proactive approach signals a new era of accountability in the industry.

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The Commission continues to monitor compliance, balancing consumer rights with operational realities faced by utilities.

Stakeholders now await tangible improvements in billing accuracy, hoping the sanctions catalyze lasting reforms.

With Nigeria’s electricity landscape evolving, NERC remains pivotal in bridging gaps between service providers and end-users.

The latest penalties highlight the regulator’s vigilance in curbing malpractice while advocating for fair pricing mechanisms.

Moving forward, sustained enforcement and consumer education will be critical to achieving a balanced, efficient energy market.

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