NERC Fines Eight DisCos Over N628 Million For Violating Energy Caps On Unmetered Customers

The affected DisCos include Abuja Electricity Distribution Company (AEDC), Ikeja Electric (IKEDC), Eko Electricity Distribution Company (EKEDC), Enugu Electricity Distribution Company (EEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electric, Kano Electricity Distribution Company (KEDCO), and Yola Electricity Distribution Company (YEDC).

NERC’s regulatory notice, published on Thursday via its X (formerly Twitter) account, highlighted the ongoing concerns of non-compliance within the Nigerian Electricity Supply Industry (NESI). The Commission stated that the sanction, which aims to ensure regulatory compliance and consumer protection, followed a review of the DisCos’ billing practices for the third quarter of 2024.

The DisCos have been instructed to issue credit adjustments to the affected customers by May 15, 2025. NERC’s notice explained that the energy caps for unmetered customers were introduced in 2020 through the Capping of Estimated Bills Order to align estimated bills with the actual consumption of metered customers on the same supply feeders.

However, a review revealed that between July and September 2024, these DisCos breached the energy caps, billing unmetered customers higher amounts than allowed. NERC emphasized that such violations exploit unmetered consumers and violate the provisions of the Capping Order, which is intended to protect consumers from excessive billing.

The Commission’s enforcement action is part of its broader efforts to address the issue of estimated billing abuse and speed up the rollout of prepaid meters under the National Mass Metering Programme (NMMP).

While the exact breakdown of the fines for each DisCo was not immediately provided, NERC clarified that the fines were calculated based on the volume of excessive billing and the duration of the infractions.

Affected customers can expect credit adjustments on their accounts, which will lower their future electricity bills. NERC has urged consumers to monitor their electricity bills closely and report any discrepancies through the Commission’s complaints channels or the customer care units of the respective DisCos.