The news of power distribution companies (DISCOS) overbilling about 7.1 million unmetered consumers for nine months indicates laxity on the part of the Nigeria Electricity Regulatory Commission (NERC).
Development Diaries reports that the power distributors raked over N105 billion as a result of overbilling, according to various Regulatory Interventions for Non-Compliance with the Order on Capping of Estimated Billing to Unmetered Customers issued to 11 Discos by NERC.
This action by discos simply points to the fact that NERC has not strictly enforced regulations that govern billing practices and ensured that discos adhere to them.
It is also an indication that the rights of consumers are not protected enough.
According to the Electric Power Sector Reform (EPSR) Act, 2005, all customers have a right to transparent electricity billing.
The situation not only violates consumers’ rights to fair and transparent pricing but also worsens financial burdens on already strained households.
In many cases, consumers lack recourse or avenues for redress as they encounter bureaucratic hurdles and inadequate regulatory oversight in resolving disputes with distribution companies.
Furthermore, overbilling can lead to a lack of trust and credibility in the electricity supply system, undermining consumer confidence in the reliability and integrity of service providers.
What should be done?
Addressing these systemic issues requires robust regulatory mechanisms, transparent billing practices, and effective consumer protection measures to ensure that consumers’ electricity rights are respected and upheld.
Although NERC has declared that it would deduct N10,505,286,072 from the annual allowed revenues of the 11 power distribution companies during the next tariff review as part of sanctions, the regulatory body must do more to ensure enforcement.
The problem of overbilling would not have arisen if all consumers had been provided electricity meters as required by the EPSR Act.
More alarming is a December 2023 report by Punch indicating that consumers lodged 333,947 complaints bordering on metering, billing and service interruption to their various distribution companies within three months.
Development Diaries calls on the Minister of Power, Adebayo Adelabu, to ensure that Nigeria’s metering gap is met to prevent such situations.
We also call on citizens to demand accountability from NERC, while we urge the commission to commit to regulatory compliance and consumer protection within the Nigerian electricity supply industry.
Photo source: NERC Nigeria
