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NERC slams N628m fine on 8 DisCos over violation of energy caps

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By Isaac Anumihe, Abuja

The Nigerian Electricity Regulatory Commission (NERC) has imposed a total fine of N628 million on eight electricity distribution companies (DisCos) for breaching the energy caps set for unmetered customers between July and September 2024.

The sanctioned DisCos include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola. In addition to the monetary penalty, NERC has directed the companies to issue credit adjustments to the affected customers on or before May 15, 2025.

The sanctions were detailed in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) 2024. The regulatory action marks another push by NERC to ensure consumer protection and fairness in electricity billing.

This development comes on the heels of a similar action in 2023, when NERC fined 11 DisCos a total of N9.13 billion for overbilling customers through estimated billing practices.

According to the supplementary order signed by NERC Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, the penalty follows an extensive investigation into the billing practices of Abuja Electricity Distribution Company (AEDC), which triggered a broader review of industry compliance.

“The penalties are in response to the DisCos’ persistent non-compliance with our directives on capping estimated billing. These practices unfairly burden customers without meters, and such infractions will not be tolerated,” the Commission stated.

A breakdown of the fines from a previous review shows Abuja DisCo incurred the highest penalty at N1.69 billion, followed by Eko and Ikeja DisCos, each with fines of N1.41 billion. Jos DisCo was fined N1.33 billion; Port Harcourt, N1.16 billion; Benin, N804 million; Enugu, N310 million; Kaduna, N115 million; Yola, N54 million; Kano, N20 million; and Ibadan, N15 million.

NERC reaffirmed its commitment to enforcing compliance within the sector, especially in protecting consumers from arbitrary charges and ensuring equitable access to electricity.



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