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NERC fines 11 DisCos N10.5bn over ‘arbitrary billing’ of unmetered customers

NERC fines 11 DisCos N10.5bn over ‘arbitrary billing’ of unmetered customers
February 09
22:51 2024

The Nigerian Electricity Regulatory Commission (NERC) says it has sanctioned 11 electricity distribution companies (DisCos) for non-compliance with the capping of estimated bills for unmetered customers.

In a statement on Friday, NERC said a review of the DisCos billing of unmetered customers for 2023 had revealed non-compliance with the monthly energy caps issued by the commission.

According to NERC, the capping is aimed at aligning the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

As part of its sanction to the defaulters, the commission said the DisCos would be charged N10.5 billion.

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”The public may recall that in 2020, the commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps,” NERC said.

“The commission in pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the order on non-compliance with capping of estimated bills (Order No: NERC/2024/004-014) which stipulates the following; DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by March 2024 billing cycle.

“DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website not later than March 31, 2024.

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The commission shall deduct a sum of N10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the commission.”

The commission, therefore, said there is a need to safeguard unmetered customers from arbitrary billing by DisCos

NERC also reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).

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