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Nigerian Electricity Firms Fined Millions for Breaching Customer Energy Caps

Nigeria’s electricity regulator has imposed fines totalling over 628 million Naira (approximately £325,000) on eight power distribution companies (DisCos) for failing to adhere to monthly energy caps for customers without electricity meters.

The Nigerian Electricity Regulatory Commission (NERC) announced on Thursday that the affected DisCos are Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola. These companies were found to be in non-compliance with the energy consumption limits set by the commission for unmetered customers between July and September 2024.

In a statement, NERC cited Section 34(1)(d) of the Electricity Act 2023 as the basis for the sanctions. The commission stated that these DisCos “failed to fully comply with the monthly energy caps issued by the commission between July – September 2024 (2024/Q3).”

NERC has mandated that the sanctioned DisCos must issue credit adjustments to the affected electricity consumers by May 15th, 2025.

The regulator emphasized that these sanctions are crucial for ensuring both regulatory compliance and the protection of consumers within the Nigerian Electricity Supply Industry. The move underscores NERC’s commitment to holding power distribution companies accountable for adhering to the established rules and safeguarding the interests of unmetered customers who rely on estimated billing.

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