DisCos to forfeit N10.5bn for over-billing unmetered customers

DisCos to forfeit N10.5bn for over-billing unmetered customers

The Nigerian Electricity Regulatory Commission (NERC) says it will deduct N10.5bn from the 11 electricity Distribution Companies (DisCos) for over-billing unmetered customers.

They were found not to have complied with the capping of estimated bills for customers without prepaid meters.

This is contained in a statement issued by the commission’s management on Friday in Abuja.

NERC said, “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.”

The statement said 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.

According to the management, a review of the Electricity Distribution Companies (“DisCos”) billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.

NERC noted that 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”), 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.”