Power Distribution Companies (Discos) Overcharge Customers by N105 Billion, NERC Imposes Sanctions

In a stern move by the Nigerian Electricity Regulatory Commission (NERC), it was announced on Friday that a hefty sum of N10,505,286,072 would be deducted from the annual allowed revenues of 11 power distribution companies during the forthcoming tariff review. This decision comes as a sanction for their failure to adhere to the capping of estimated bills for customers without meters.

The revelation came through a notice released in Abuja by NERC, highlighting the disregard shown by these distribution companies in billing unmetered customers within their respective franchise areas throughout 2023. According to the commission, the billing practices of the Discos surpassed the monthly energy caps set by NERC, resulting in substantial over-billing.

Under the orders issued to the Discos, it was found that these companies collectively overcharged their customers by approximately N105 billion over nine months. Specific instances include Abuja Disco overbilling its unmetered customers by N17.874 billion, Eko Disco by N13.137 billion, Port Harcourt Disco by N14.187 billion, and Kaduna Disco by N1.145 billion.

NERC has directed the Discos not only to refund the excess charges to the affected customers but also to ensure strict compliance with regulations moving forward. To serve as a deterrent, the commission has imposed a 10 percent fine on the utilities.

The commission's order emphasizes that until customers are metered by their respective distribution companies, they should not pay more than the maximum amount stipulated by NERC. This directive aims to align the billing of unmetered customers with the consumption levels of those with meters.

In a statement, the regulator underscored its commitment to upholding regulatory standards and protecting consumers within the Nigerian Electricity Supply Industry. This move by NERC reflects ongoing efforts to address longstanding grievances regarding arbitrary billing practices by power distribution companies across the nation.