FCCPC urges stricter penalties for DisCos non-compliance with mandatory cap on estimated billing

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed support for the decision of the Nigerian Electricity Regulatory Commission (NERC) against 11 Electricity Distribution Companies (DisCos) further calling for stricter sanctions against DisCos.

NERC’s decisions were prompted by the DisCos’ practice of arbitrarily billing unmetered customers and failing to adhere to the capping of estimated bills.

In a statement released by Dr. Adamu Abdullahi, the Acting Executive Vice Chairman of FCCPC in Abuja on Monday, NERC was encouraged to consider implementing stronger measures to prevent future violations.

Abdullahi suggested that these stronger measures could involve increased financial penalties, stricter enforcement mechanisms, and, in extreme cases, the revocation of operating licenses for repeat offenders.

He stated, “We stand in solidarity with NERC in its commitment to safeguard unmetered customers from arbitrary billing by DisCos. The capping regulation was a significant step towards ensuring fairer treatment for those without meters, and the FCCPC fully supports its enforcement.”

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“The FCCPC reiterates its unwavering commitment to ensuring a better deal for electricity consumers in Nigeria. Apart from its routine resolution of electricity consumer complaints, the commission will continue to organise electricity consumer platforms across the country.”

“These platforms have provided invaluable opportunities for consumers to voice their complaints and receive instant responses and redress from DisCos and regulators, including the FCCPC,”

Last week, the Nigeria Electricity Regulatory Commission (NERC) fined 11 electricity distribution companies5 billion over the non-compliance with mandatory capping of estimated billing of unmetered customers.

In February 2020, the Nigerian Electricity Regulatory Commission (NERC) mandated a capping system on estimated billing for energy companies in Nigeria. This directive aimed to regulate the charges imposed on unmetered customers across the country.

The current Minister of Power estimates the number of unmetered customers to hover between 7 and 8 million. However, the NERC’s report for Q3 put the figure at 11 million customers.