The Nigerian Electricity Regulatory Commission (NERC), has imposed a N10.5billion fine on the 11 electricity distribution companies (DisCos), for overbilling customers without meters between January and September 2023.
The Commission said it will deduct a total, N10.5 billion from the annual allowed revenues of the DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.
The electricity sector regulator also ordered the DisCos to issue credit adjustments to all over-billed unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
The DisCos were also directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024.”
Recent data published by NERC showed that unmetered customers in Nigeria are 6.68 million out of the 12 million people that registered to get into the system in the third quarter of 2023.
The NERC, 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.
Recent checks revealed that of the over 1,600,000 customers of the Abuja Electricity Distribution Company (AEDC), less than half are metered while the company impose arbitrary billings on the unmetered customers.
According to separate Orders issued to the DisCos on Friday, the Commission said the companies were in breach of the Order it issued in 2020 on capping of electricity billed to unmetered customers by the DisCos.
The Commission stated: “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 which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“A review of the Electricity Distribution Companies billing of unmetered customers for 2023 has 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, 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: “Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
“Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31st March 2024.
“Regulatory Sanctions: 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”.
“To forestall further non-compliance, a deduction of N1,413,766,176 which is equivalent to 10% of the Naira value of the total over-billing for the period January – September 2023 shall be applied to EKEDC’s annual OpEx over a rolling 12-month period during the next tariff review.
“Notwithstanding the provisions of section (11B)(i), and pursuant to the provision of section 34(2)(f) of the EA 2023, the Commission may deduct a greater percentage of the total over-billing from EKEDC’s admin OPEX where a non-compliance with capping Orders persists”.