The Nigerian Electricity Regulatory Commission (NERC) has slammed eight distribution companies (Discos) with a fine of N628 million for over-billing their customers in violation of the agency’s order on capping of estimated bills for unmetered customers.
The eight Discos sanctioned for non-compliance in the July to September 2024 billing circle include: Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola Discos, according to a statement issued by NERC, Thursday.
The commission also directed the defaulting Discos to issue commensurate credit adjustments to all customers affected by the overbilling.
NERC had in 2020 issued the Order on Capping of Estimated Bills and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“Pursuant to section 34(1)(d) of the Electricity Act 2023 (EA 2023), the Commission has sanctioned eight Electricity Distribution Companies (DisCos) – Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, for failing to fully comply with the monthly energy caps issued by the Commission between July – September 2024 (2024/Q3).
“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“A review of Discos’ billing of unmetered customers for July – September 2024 (2024/Q3) revealed non-compliance with the monthly energy caps issued by the Commission.
“The non-compliant Discos have been sanctioned to pay fines amounting to N628,031,583.94, which is equivalent to 5 per cent of the naira value of the gross overbilling for the period under review.
“The Commission has also mandated the Discos to issue commensurate credit adjustments to all customers affected by the overbilling by 15th May 2025 – the end of the April 2025 billing cycle.”
A THISDAY computation of the 5 per cent showed that just over N12.5 billion was over-billed during the period by the distribution companies.
NERC further reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).
Also, in an apparent move to boost state energy planning within the states, the Nigeria governors yesterday signed a memorandum of understanding with Energy China, the main company responsible for renewable energy and gas production in the Asian country.
Speaking on behalf of the Chairman of the Governors forum, the Governor of Gombestate, and Chairman Northern Governors’ Forum, Inuwa Yahaya, said that the MoUsignals a critical step in strengthening the institutional framework for sub-national energy governance.
“Since the passing of the Electricity Act, we have witnessed a surge of innovations and reforms aimed at revamping our energy sector. We are moving towards more decentralised energy solutions, encouraging the integration of renewable energy solutions that can provide sustainable and affordable electricity to our communities.
‘‘The Act has also laid the groundwork for improving regulatory frameworks, enabling private sector investments, and fostering public-private partnerships, a vital component for the successful implementation of our renewable energy goals.’
‘’We must acknowledge that these advances come with their own set of challenges. Shortfalls in infrastructure, financing, and regulatory hurdles continue to impede progress. We must address these issues collaboratively.
‘’By fostering partnerships between the government, private investors, and international stakeholders, we can develop innovative financing models, improve capacity building, and enhance grid infrastructure to accommodate renewable energy sources effectively,” he stated.
Also, the Minister of Innovation, Science and Technology, Chief Uche Nnaji, saidthat the MoU said the partnership reflects Nigeria’s shared ambition to expand access to clean energy, strengthen energy planning at the state level, and promote sustainable technologies.
According to the minister, the scope of the MoU includes deployment of renewable energy infrastructure (solar, wind, hydro), and establishment of a Nigeria-China Renewable Energy Research Centre to drive innovation, technology transfer, and capacity-building.
The chairman of the China Energy commission , Dr. Song Liang, pledged full implementation of the MoU and ensure full cooperation between Nigeria and China.
He further said that there was the need to prioritise the development the energy sector as well support sharing of intelligence on issues relating to renew energy promotion
Meanwhile, energy stakeholders in the country have said that the inability of Nigeria to build new power plants is one to be worried about as the country cannot progress if its energy stock is not growing year-on- year in relation to gross National Domestic Growth (GDP).
They equally urged the federal government to ensure sustainable energy security for the people in its energy transition initiative.
They also called for the lifting of suspension on the Guarantee Instrument for Power Purchase Agreements (PPAs) to allow for more investors in the sector, harping that the current $4 per/day energy supply cannot encourage the industrialisation of the economy, aiming to hit $1 trillion in five years.
Speaking at the bullion lecture themed: ‘Architecting the Energy Sector for Nigeria’s $1 Trillion Economy Vision’, Chief Executive Officer, Geometric Power Plant, Prof. Barth Nnaji, said the government has a role to play to improve investors’ confidence in attracting the private sector players in the energy sector.
He questioned why in 10 years the country has not built new plants if it plans to have an energy sector that would support a $1 trillion economy.
He said the country must make a substantial investment in gas to encourage more thermal plants to boost generation to 100, 000MW to become a higher medium economic power.
But he argued that such a level of power generation cannot be achieved without the lifting of the suspension of the PPAs to attract investors.
“During our time in government, I, in collaboration with then Minister of Finance and Coordinating Minister of the Economy, introduced Partial Risk Guarantee (PRG) through the World Bank as a way to incentivise and provide payment security for power plant development in Nigeria.
“Many companies started working fast to take advantage of this initiative. It was based on this initiative that significant projects like ExxonMobil (500MW); Oma Power (1080MW), etc. got developed to maturity.
“Unfortunately, the 461 Megawatt Azura-Edo Power Plant in Edo State is the only product of this initiative by the time President Goodluck Jonathan left office the Muhammadu Buhari Government which succeeded did not continue with the MOUs and the PRG Instrument for the PPAs.
“So for more than 10 years, no new power plant has been built or initiated in Nigeria. The 188MW Geometric Power plant commissioned last year was conceived before this period and built without a need for a guarantee instrument. We should never forget that for any country’s economy to keep growing, it must keep growing its energy stock year-on-year,” he stated.
He advised that the country should aim at 100,000MW but expressed doubt if it could ever be achieved because of the suspension of the guarantee instrument for PPAs by the Buhari’s administration.
On her part, the National President, Women in Energy, Oil and Gas and Chairman of the Lecture, Tolulope Longe, said that the ambition of a $1 trillion economy cannot depend on diesel generators but on energy transition that reflects the Nigerian realities, not foreign prescriptions.
“The energy sector, in all its complexity and promise, sits at the very heart of that vision. Let’s be clear, Nigeria cannot build a $1 trillion economy on a $4 per day energy supply. We cannot industrialise on diesel generators and so our energy transition must reflect the Nigerian realities, not foreign prescriptions,” she added.
Emmanuel Addeh, Chuks Okocha and Peter Uzoho, Oluchi Chubuzor
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