Discos Overbill Customers By N105bn, NERC Takes Firm Action

Discos Overbill Customers By N105bn, NERC Takes Firm Action

In a startling revelation, the Nigerian Electricity Regulatory Commission (NERC) has exposed power distribution companies (Discos) for overbilling customers to the staggering tune of N105 billion over a nine-month period…..READ ALSO NERC Increases Prices Of Prepaid Meters (SEE NEW PRICE)

This revelation has triggered swift action from NERC, which has announced significant sanctions against the erring Discos.

NERC has disclosed its intention to deduct a whopping N10.5 billion from the annual allowed revenues of these Discos during the next tariff review as part of punitive measures for their non-compliance with regulations on capping estimated bills for unmetered customers.

According to NERC, the billing practices of the Discos for unmetered customers in 2023 demonstrated flagrant disregard for the monthly energy caps set by the commission. This discrepancy led to an exorbitant overbilling of customers, prompting NERC to intervene decisively.

Several Discos, including Abuja, Eko, Port Harcourt, and Kaduna, were found guilty of overcharging unmetered customers by billions of naira. As a consequence, NERC has ordered these Discos to issue full refunds to affected customers and ensure strict compliance with regulatory directives going forward.

To deter future non-compliance, NERC has imposed a hefty fine equivalent to 10% of the overbilled amount on the implicated utilities. Additionally, the commission has mandated the Discos to publish the list of credit adjustment beneficiaries and issue public notices to this effect.

The rampant overbilling by Discos has been a persistent issue affecting electricity consumers nationwide, leading to a surge in complaints regarding metering, billing, and service interruptions. NERC’s latest crackdown underscores its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.

As the Discos grapple with the repercussions of their actions, NERC’s firm stance serves as a stern warning against further exploitation of consumers and reinforces the imperative for accountability and transparency in the power sector.