Between January and September 2023, power distribution companies overbilled approximately 7.1 million unmetered electricity consumers, leading to a staggering revenue of over N105 billion, according to the Nigerian Electricity Regulatory Commission (NERC), a federal agency.
An analysis of the latest monthly figures of overbilled customers reveals significant discrepancies across various distribution companies (Discos). Yola Disco, for instance, overcharged about 42,902 customers, totaling N541.9 million. Similarly, Abuja Disco overbilled 1,823,218 customers, resulting in a revenue of N17.9 billion.
Benin Disco, Enugu Disco, Eko Disco, Ibadan Disco, Jos Disco, Ikeja Disco, Kaduna Disco, Kano Discos, and Port Harcourt Disco were also found to have overcharged their customers during this period.
As a response to this non-compliance, NERC announced its intention to deduct N10,505,286,072 from the annual allowed revenues of the 11 Discos during the next tariff review. This sanction is part of efforts to ensure adherence to the capping of estimated bills for unmetered customers.
NERC emphasized the importance of aligning estimated bills for unmetered customers with the actual consumption of metered customers on the same supply feeder. It issued orders to the Discos to comply with monthly energy caps until customers are metered.
In a bid to protect unmetered customers from arbitrary billing, NERC issued an order on Non-Compliance with Capping of Estimated Bills, pursuant to Section 34(1)(d) of the Electricity Act 2023.
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