₦628 Million Fine: 8 Nigerian DisCos Penalized For Overbilling Unmetered Electricity Users

In a bold move to uphold transparency and consumer protection, the Nigerian Electricity Regulatory Commission (NERC) has imposed financial penalties totaling ₦628.03 million on eight electricity distribution companies (DisCos). These sanctions are the result of the companies’ failure to adhere to approved energy billing limits for unmetered customers during Q3 of 2024 (July to September).

DisCos Affected by the Penalty

The DisCos penalized for overbilling include:

Abuja Electricity Distribution Company
Eko Electricity Distribution Company
Enugu Electricity Distribution Company
Ikeja Electric
Jos Electricity Distribution Company
Kaduna Electricity Distribution Company
Kano Electricity Distribution Company
Yola Electricity Distribution Company

These companies were found guilty of violating energy capping regulations, despite clear directives from NERC.

What Prompted the Sanction?

According to Section 34(1)(d) of the Electricity Act of 2023, NERC has the legal authority to sanction companies that fail to comply with its regulatory orders. In this case, the violation stems from the Order on Capping of Estimated Bills (Order No: NERC/197/2020).

This order was introduced in 2020 to prevent the exploitation of unmetered customers by ensuring that their estimated bills are consistent with the average consumption levels of nearby metered customers.

“A review of DisCos’ billing for unmetered customers between July and September 2024 showed clear violations of the monthly energy caps set by the Commission,” NERC stated in its latest public announcement.

Financial Penalty Breakdown

The ₦628.03 million fine represents 5% of the total naira value of excess billing charged to customers within the review period. This strategic measure underscores NERC’s commitment to enforcing fairness and transparency in Nigeria’s electricity market.

Credit Refund Mandate to Consumers

In addition to the fines, NERC has mandated the eight DisCos to issue credit adjustments to all affected customers. These credit refunds must be processed on or before May 15, 2025, coinciding with the end of the April 2025 billing cycle.

This move serves as restitution for the unfair financial burden placed on electricity users and aligns with NERC’s consumer protection policy.

NERC’s Commitment to Regulatory Compliance

NERC has reiterated its dedication to strengthening regulatory compliance and protecting the interests of consumers across the Nigerian Electricity Supply Industry (NESI).

The Commission emphasized that strict enforcement of billing regulations is non-negotiable, and future violations will be met with even sterner consequences.

What This Means for Nigerian Electricity Consumers

For millions of Nigerians still waiting to be metered, this development offers a glimmer of hope. It reinforces the importance of metering as a way to ensure fair and accurate electricity billing.

To learn more about how the estimated billing system works and its implications, read our in-depth guide on Understanding Nigeria’s Estimated Billing System.

You can verify the full statement from NERC through their official website here:
nerc.gov.ng

Conclusion

The ₦628 million fine against these eight DisCos signals a renewed effort by NERC to clean up the billing practices in Nigeria’s power sector. It is a clear warning to other electricity providers that non-compliance will no longer be tolerated.

As Nigeria continues its journey toward a more transparent and accountable energy system, consumer voices are finally being heard — and backed by action.