The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of over N628 million on eight electricity distribution companies (DisCos) for breaching the energy billing caps set for unmetered customers.

The infractions, which took place from July to September 2024, underscore persistent challenges with regulatory compliance in Nigeria’s electricity industry.

On Thursday, the Nigerian Electricity Regulatory Commission (NERC) shared a notice via its X (formerly Twitter) account, naming the eight DisCos involved in the violations.

The companies identified were 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 explained that the companies had failed to adhere to the billing limits outlined in the 2020 Order on Capping of Estimated Bills, which was designed to ensure unmetered customers are charged in line with the average consumption of metered customers on the same feeder.

The Commission’s investigation into the billing practices of these DisCos for the third quarter of 2024 revealed violations of the established caps, resulting in customers being overcharged.

In addition to the monetary fines, NERC has ordered the DisCos to apply credit adjustments to the accounts of all affected customers by May 15, 2025.

While the exact amount each DisCo is required to pay has not been made public, NERC clarified that these credit adjustments must be transparent and auditable.

This enforcement is part of NERC’s broader strategy to reduce the widespread abuse of estimated billing in Nigeria, which has been a longstanding issue in the sector.

The Commission also reiterated the urgency of accelerating the deployment of prepaid meters under the National Mass Metering Programme (NMMP) and other metering initiatives, as part of its efforts to create a fairer and more efficient billing system.

Consumers impacted by the overbilling can expect their electricity bills to be adjusted accordingly.

NERC has encouraged affected customers to monitor their bills closely and report any discrepancies through the Commission’s complaints channels or directly to the customer care units of the respective DisCos.