NERC Fines DisCos N9.11bn For Overbilling Unmetered Customers

Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N9.11 billion on the 11 electricity Distribution Companies (DisCos) for violating regulations regarding the billing of unmetered customers on estimated billing.

The fine was contained in the September 2024 Supplementary Order of the Multi Year Tariff Order, released yesterday.

This is as the Commission left the electricity tariff for Band A customers unchanged for September 2024.

The NERC September 2024 Supplementary Multi-Year Tariff Order (MYTO), released on Friday showed that Band A Tariff remained unchanged at N209/Kw/h while Bands B to -E also remained the same rate as it has been since December 2022.

Recall that the current Band A tariff was raised in July 2024 from N206.80 to N209.50, reflecting ongoing economic pressures including inflation and operational costs faced by electricity distribution companies (DisCos).

A review of the documents showed that Abuja Disco was fined the highest amount with N1.69 billion followed by Eko Disco, N1.41 billion, Ikeja Disco was also fined N1.41 billion.

Others include Jos Disco with N1.33 billion, Port Harcourt Disco was fined N1.16 billion, Benin Disco was fined N804 million; Enugu Disco, N310 million; Ibadan Disco, N150 million; Kaduna Disco, N115 million; Yola Disco, N54 million and Kano Disco N20 million.

The order issued on August 30, was signed by NERC vice chairman, Musiliu Oseni and commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, and follows a comprehensive investigation into the DisCos billing practices.

The penalty, NERC noted, is a response to the Discos non-compliance with previous directives aimed at capping estimated billing for electricity consumers.

With these measures, Discos are required to enhance its service delivery and adhere to service-based tariffs.

Also, the companies must publish explanations on its website within 24 hours if it fails to provide a committed level of service on Band A feeders for two consecutive days.

This initiative, NERC noted, would bolster the reliability of electricity supply within their service area.

It however approved the payment of N26.4 billion subsidy for Abuja Electricity Distribution Company (AEDC), Plc customers.

NERC said: In line with the policy direction of the federal government on electricity subsidy, the allowed tariffs for Bands B-E customer categories shall remain frozen at the rates payable since December 2022 subject to further policy direction by the government.

With this policy, the estimated subsidy benefit to customers under Abuja Electricity Distribution Company (AEDC) franchise in 2024 is approximately N26.4 billion monthly.