• Saturday, November 23, 2024
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NERC to deduct N10.5bn from DisCos over estimated bills

The Nigerian Electricity Regulatory Commission (NERC) has sactioned the eleven electricity distribution companies over non-compliance with capping of estimated bills for unmetered customers.

In a statement issued to BusinessDay on Friday, the Commission stated that a sum of N10.5 billion will be deducted from the annual allowed revenues of the eleven DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.

The Commission in 2020 had 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.

However, it noted that a review of 2023 billing showed that the DisCos failed to comply with the monthly energy caps issued in the period.

“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 that DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

“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,” it stated.

The Commission also stated that a sum of N10.5 billion will be deducted from the annual allowed revenues of the eleven 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 stated.

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