The Nigerian Electricity Regulatory Commission (NERC) has fined eight DisCos a total of N628 million for breaching estimated billing caps. The move, aimed at curbing arbitrary charges for unmetered customers, has drawn mixed reactions from consumers and experts. The affected DisCos include AEDC, IKEDC, EKEDC, EEDC, JEDC, Kaduna Electric, KEDCO, and YEDC.
While some view NERC’s fines as a positive step, many consumers argue they are inadequate and don’t address deeper issues like delayed mass metering and alleged extortion by DisCo officials. An Abuja-based fashion designer, Matthew, shared his experience, accusing AEDC of cutting off his power after he refused to pay without receiving a bill, prompting him to file a petition with NERC.
As of NERC’s Q4 2024 report, over 7 million of Nigeria’s 13.5 million electricity customers remain unmetered, fueling the practice of “crazy bills” through estimated billing. Despite initiatives like the Meter Asset Provider (MAP) scheme, progress on metering has been slow. Experts, including Dr. Muda Yusuf, argue that the fines may not be enough to reform DisCos, which exploit the metering gap by issuing inflated bills.
Yusuf commended NERC’s action but stressed that regulatory pressure could push DisCos to accelerate the metering process.Dr. Muda Yusuf, CEO of CPPE, suggested that NERC’s fines could motivate DisCos to accelerate metering, as some DisCos have been slow to provide meters due to the profitability of estimated billing.
He also emphasized that the government should support this process and urged sanctions for consumers involved in energy theft or non-payment, noting that even government agencies are guilty of not paying bills. Power sector consultant Kunle Adetiba called NERC’s fines symbolic, advocating for more severe measures like license suspension and faster metering targets. Former NERC Chairman Dr. Sam Amadi supported stronger sanctions, recalling their use during his tenure.
Dr. Sam Amadi recalled sanctioning IBDC, AEDC, and EEDC for overcharging customers shortly after privatization. An AEDC official in Mararaba blamed customers for bribing officials, complicating the prepaid meter issue. Many consumers, like Matthew from Abuja, believe real change will only come when metering is universal and arbitrary disconnections end.
The Federal Government plans to introduce 3.205 million meters in April 2025 under the Distribution Sector Recovery Programme (DISREP) to address the metering gap, with NERC reporting 6.29 million meters installed by Q4 2024.
