NERC fines eight DisCos N628m for overbilling customers

By Waliat Musa

Enugu issues 5MW power generation

The Nigerian Electricity Regulatory Commission (NERC) has imposed a N628,031,583.94 fine on eight electricity distribution companies (DisCos) for failing to comply with the monthly energy caps in the third quarter of 2024.

In a statement yesterday, the commission named the sanctioned utilities to include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola. They were found to have violated the commission’s 2020 Order on Capping of Estimated Bills (Order No: NERC/197/2020), which aimed to align the estimated bills for unmetered customers with the actual consumption of metered customers on the same supply feeder.

Following a review of billing data for July to September 2024, NERC discovered that the affected DisCos had overbilled unmetered customers, failing to adhere to the prescribed energy caps.

Consequently, the regulator fined them N628,031,583.94, representing five per cent of the total gross overbilling during the period under review.

“The non-compliant DisCos have been sanctioned to pay fines amounting to six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo (N628,031,583.94), which is equivalent to five per cent of the Naira value of the gross overbilling for the period under review,” it said.

Besides the fine, NERC has ordered the DisCos to issue credit adjustments to all affected customers. The adjustments, it added, must be completed by May 15, 2025, coinciding with the conclusion of the April 2025 billing cycle.

NERC reiterated its commitment to upholding regulatory compliance and ensuring consumer protection in the Nigerian Electricity Supply Industry.
ON its part, Enugu State Electricity Commission, in a move to boost electricity supply in the state, issued a 5MW power generation licence to Tempo Power Solutions Limited to set up a gas-fired plant.

This brings to a total of 15MW, the worth of power generation licenses issued by EERC since the successful completion of the transfer of regulatory oversight from the NERC to the agency on October 22, 2024.

Speaking during the issuance in Enugu yesterday, the Chairman and Chief Executive Officer of EERC, Chijioke Okonkwo, explained that the milestone reflected the growing confidence that private sector players and investors reposed in the state’s electricity sector and in enabling the environment created for the electricity business to thrive.

He said: “Tempo Power swiftly took advantage of this opportunity offered by the conducive investment climate in Enugu State, engaged an off-taker, and successfully completed the application process for the generation licence.

“Their project is a model of proactive engagement and strategic partnership, and the successful deployment of this 5MW power plant is a collective win for all of us. We are confident that as the market grows, Tempo Power will continue to scale up its capacity.”

In his remarks, the Executive Director of Tempo Power, Collins Kalabare, commended Governor Peter Mbah for setting the pace in what states could do to solve Nigeria’s energy problem and the EERC for running a professional and transparent system where investors do not need to know anybody to get things done fast.

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