The Nigerian Electricity Regulatory Commission (NERC) fined electricity distribution companies (DisCos) N10.5 billion for not adhering to the capping of estimated bills for unmetered customers. The Federal Competition and Consumer Protection Commission (FCCPC) has endorsed this action.
The fine is a result of continuous efforts to improve consumer protection and resolve concerns with electricity billing. The commission stressed how crucial it is to ensure fair billing practices and hold power distributors responsible while upholding a high standard of service delivery.
Dr. Adamu Abdullahi, the Acting Executive Vice Chairman and Chief Executive Officer of the Commission, stated that the Federal Competition and Consumer Protection Act (FCCPA) 2018’s Section 17(s) mandate, which gives the Commission the authority to protect consumers from unfair business practices or unethical exploitation by individuals, businesses, or trade associations, as well as the power to pursue remedies on their behalf, is what drove NERC’s decisive action.
He continued by saying that the current Memorandum of Understanding (MoU) between the FCCPC and NERC attempts to guarantee better protection for energy users through information exchange, collaborative investigations, and coordinated enforcement actions.
Abdullahi continued, saying that the FCCPC fully supported the capping regulation as a major step toward guaranteeing more equitable treatment for individuals without meters. To deter such offenses in the future, he urged NERC to consider stronger enforcement actions, such as stiffer financial penalties, stricter enforcement protocols, and the cancellation of operating licenses.
He invited power users to come out and file grievances with their various DisCos if they felt unfairly treated by their projected bills. He suggested taking these complaints to either the FCCPC or NERC if they are not sufficiently addressed.
He pledged to ensure that any valid complaints would be thoroughly investigated and that impacted customers would receive compensation.
“The Commission will persist in arranging nationwide electricity consumer forums in addition to its customary handling of consumer grievances. These platforms have given customers priceless chances to air their grievances and get prompt answers and remedies from DisCos and authorities, such as the FCCPC.”
“Through information exchange, cooperative investigations, and coordinated enforcement actions, the current Memorandum of Understanding between the FCCPC and NERC seeks to provide more effective protection for energy customers. The systemic issues plaguing the industry, like metering discrepancies, billing fraud, and subpar customer service, require fundamental reforms, according to the Commission,” he stated.
Similarly, at the Nigerian Electricity Supply Industry (NESI) 2024 first stakeholder meeting, Vice Chairman of NERC Musiliu Useni urged DisCos to improve their performance and warned of possible repercussions as the commission would assess each case individually and take appropriate action.
“NERC will assess performance on an individual basis. The actions and sanctions will differ. Make sure you increase your productivity. You will receive your entire OPEX if your efficiency is up to par. You will only receive 50% of your administration OPEX if you don’t perform.”
