NERC penalizes eight DisCos while Enugu boosts grid with new 5MW gas plant licence.
Lagos, Nigeria — The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eight electricity distribution companies with a cumulative fine of N628,031,583.94 for breaching energy billing regulations during the third quarter of 2024.
According to a statement released on Thursday, the affected distribution firms include Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola DisCos.
NERC penalizes DisCos over estimated billing violations
The commission noted these DisCos had flouted the provisions of the 2020 Capping of Estimated Bills Order (Order No: NERC/197/2020), which limits how much unmetered customers can be charged, based on the actual usage of nearby metered customers.
The regulatory agency disclosed that an in-depth review of billing records between July and September 2024 showed persistent overbilling practices among the sanctioned companies. The total gross overbilling amount, according to the findings, triggered a five percent penalty as stipulated by regulation.
“The non-compliant DisCos have been sanctioned to pay fines amounting to N628 million, which represents five percent of the total naira value of overbilled charges,” NERC said.
In addition to the monetary penalties, NERC directed all implicated DisCos to issue credit adjustments to affected consumers. These refunds are expected to be reflected no later than May 15, 2025, aligning with the end of the April billing cycle.
The commission reaffirmed its dedication to enforcing compliance across the electricity sector and ensuring that Nigerian consumers are protected from unfair billing practices.
Enugu licenses 5MW gas plant to expand local power generation
Meanwhile, in a separate development, the Enugu State Electricity Regulatory Commission (EERC) has issued a 5 megawatt (MW) power generation licence to Tempo Power Solutions Limited. The gas-powered plant will support Enugu’s efforts to decentralize and enhance electricity supply in the state.
The new licence brings the total capacity of generation licences issued by EERC to 15MW since the agency assumed regulatory responsibilities from NERC on October 22, 2024.
Speaking at the licence presentation in Enugu, EERC Chairman and CEO, Chijioke Okonkwo, described the milestone as a reflection of investor confidence and the state government’s commitment to supporting energy sector development.
“Tempo Power is a prime example of what’s possible in a conducive investment environment. Their swift engagement with an off-taker and successful completion of licensing shows the potential for rapid infrastructure growth,” Okonkwo said.
Tempo Power’s Executive Director, Collins Kalabare, also praised Governor Peter Mbah for transforming Enugu into a business-friendly state. He highlighted that the licensing process was professional and efficient, noting that no special connections were required to complete the application.
The move aligns with Nigeria’s broader push toward decentralized energy solutions, with state-level regulators now empowered to issue licences and oversee energy generation and distribution within their jurisdictions.
