ELECTRICITY Distribution Companies (DisCos) are exploiting consumers on estimated billing with poor knowledge of the ‘capping methodology order’ by the Nigerian Electricity Regulatory Commission (NERC), a consumer rights advocacy expert in the power sector has said.
The Director-General of Anambra Electricity Consumer Rights Initiative, Okechukwu Ferdinand Cyril-Nwuche, told The ICIR in an exclusive interview on Friday, May 16, that power consumers were not only battling irregular power supply but were forced to ‘extra payment’ of power costs beyond what the NERC capping order stipulated.
“Before I started my advocacy work, I had a firsthand experience of the Enugu Electricity Distribution Company’s Official disconnecting my power and still bringing electricity bills despite my lights being disconnected. I had to raise the issue with the relevant authorities,” he said.
Continuing, he said, “In my advocacy, I have informed power consumers on how to calculate and know what cost they should pay once they’re on estimated billing, looking at the feeder that supplies each transformer, and from the NERC download of the monthly energy cap, and what each DisCo is expected to charge.
“Our research after engagement with NERC showed that most of these DisCos never obeyed NERC’s ‘capping methodology’ for once despite sanctions and fines by NERC for violations,” Okechukwu added.
He stressed the need of transparent business dealings between DisCos and the electricity consumers without passing the burden of commercial losses to unsuspecting consumers.
On February 24, 2020, NERC issued an Order on the Capping of Estimated Bills in the Nigerian Electricity Supply Industry (the Order). The order specifically focuses on customers in the residential and commercial categories.
The Nigerian Electricity Regulatory Commission Order No../NERC/197/2020 issued on February 20, 2020, caps estimated billing for unmetered customers.
This order aims to prevent arbitrary billing by ensuring that unmetered customers are not charged more than metered customers with similar consumption patterns on the same electricity feeder.
The objective is to protect unmetered customers from being arbitrarily billed by ensuring that they are charged at rates comparable to metered customers on the same feeder.
The order also focuses on addressing issues of DisCos charging unmetered customers excessive amounts based on estimated consumption.
Specifically, the order sets maximum energy consumption limits for unmetered customers in specific tariff classes (R2 and C1) based on the average consumption of metered customers on the same feeder.
Despite the capping order, NERC had sanctioned some DisCos exploiting consumers through overbilling.
The NERC has imposed a substantial fine of N1. 69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers.
This penalty was detailed in Order NERC/2024/114 and published on NERC’s website, and is part of the Commission’s September 2024 Supplementary Order.
To further caution erring DisCos, NERC had also, on April 10, sanctioned eight power distribution companies (DisCos) for noncompliance with the capping of estimated bills for unmetered customers.
According to a statement in April 2025, the affected DisCos are Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola.
The electricity regulator said the affected companies overbilled customers in violation of energy caps set by the regulator for the third quarter of 2024(July to September).
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.