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NERC Fines DisCos N628m for energy cap violations

POSTED ON April 11, 2025 •   Breaking News      BY Abiodun Saheed Omodara
Nigerian Electricity Regulatory Commission (NERC)

The Nigerian Electricity Regulatory Commission (NERC) has levied a fine of N628,031,583.94 on eight electricity distribution companies (DisCos) for not adhering to the monthly energy limits during the third quarter of 2024. 

In a statement released on Thursday, the commission identified the sanctioned companies as Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola. These companies were found to be in violation of the commission’s 2020 Order regarding the Capping of Estimated Bills (Order No: NERC/197/2020), which intended to ensure that estimated billing for unmetered customers aligned with the actual consumption of metered customers sharing the same supply feeder.

Upon reviewing billing data from July to September 2024, NERC found that the affected DisCos had overcharged unmetered customers and had not complied with the designated energy limits.

As a result, the authority imposed a fine of N628,031,583.94, which accounts for five percent of the total gross overbilling during the assessment period.

“The non-compliant DisCos are required to pay fines totaling six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo (N628,031,583.94), equivalent to five percent of the total Naira value of the gross overbilling for the period assessed,” the statement indicated.

Furthermore, besides the fine, NERC has instructed the DisCos to provide credit adjustments to all affected customers, which must be completed by May 15, 2025, in line with the end of the April 2025 billing cycle. NERC reaffirmed its dedication to regulatory compliance and consumer protection in the Nigerian Electricity Supply Industry.

Additionally, the Enugu State Electricity Commission has granted a 5MW power generation license to Tempo Power Solutions Limited to establish a gas-powered plant, aiming to enhance electricity supply within the state.

This action increases the total power generation licenses issued by EERC to 15MW since regulatory oversight transitioned from NERC to EERC on October 22, 2024.

During the license issuance in Enugu yesterday, EERC’s Chairman and CEO, Chijioke Okonkwo, remarked that this achievement showcases the growing confidence from private sector participants and investors in the electricity sector and the conducive environment fostered for the electricity business to flourish.

 

He stated: “Tempo Power quickly capitalized on the opportunity presented by the favorable investment climate in Enugu State, engaged an off-taker, and successfully completed the licensing application process. Their initiative serves as a model of proactive engagement and strategic partnerships, and the deployment of this 5MW power facility is a collective triumph for us all. We are confident that as the market expands, Tempo Power will continue to enhance its capacity.”

In his comments, Collins Kalabare, the Executive Director of Tempo Power, praised Governor Peter Mbah for leading the way in what states can do to address Nigeria’s energy issues and commended EERC for maintaining a professional and transparent process, allowing investors to navigate the system without needing personal connections for efficient outcomes.

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