Overbilling: NERC to deduct N10.5bn from DisCos’ allowed revenue as sanction

For overbilling unmetered electricity customers in 2023, the Nigerian Electricity Regulatory Commission (NERC) said it will deduct a total, N10.5 billion from the 11 Electricity Distribution Companies’ (DisCos) allowed revenue as sanctions.

It said the sum will be deducted in its next tariff review, to deter future non-compliance with the energy caps approved by the Commission.

The Commission had in 2020 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. 

But, the Commission’s management in a press release on Friday said a review of the DisCos billing of unmetered customers for 2023 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, apart from the deduction, ordered a credit adjustment to customers.

With this, DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle. 

Also, the Commission directed the DisCos to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31st March 2024. 

It reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.