Estimated Billing: NERC Sanctions 11 DisCos Over Non-Compliance, Deducts N10.5bn
The Management of the Nigerian Electricity Regulatory Commission (NERC) has sanctioned eleven (11) Distribution Companies (DisCos) over non-compliance with the capping of estimated bills for unmetered customers.
This means that the DisCos defiled the Order and have been using the estimated billing method on the electricity customers that are not metered.
As a regulatory sanction, NERC said it would 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.
NERC issued an Order on Capping of Estimated Bills, in 2020, 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.
However, it said, 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.
It said, 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 31° 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.
“The Commission reaffirms its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry”, it said.
