AN analysis of the latest monthly number of overbilled customers between January and September 2023 showed that power distribution companies overcharged approximately 7.1 million unmetered electricity consumers.
The overbilling resulted in the power distributors earning over N105 billion.
Reports reveal that Yola Disco overbilled about 42,902 customers to the tune of N541.9m during the review period, while Abuja Disco overbilled 1,823,218 customers by N17.9bn.
Benin Disco overbilled 754,849 customers underestimated billing by N10.5bn, as Enugu Disco overbilled a total of 1,011,402 customers to the tune of N11.9bn during the nine-month period.
Eko Disco overbilled 371,828 customers under the estimated billing category between January and June 2023, as the months of July, August and September were not captured in the report released by NERC. It overbilled these customers to the tune of N14.13bn.
Ibadan Disco made N333.68m from the overbilling of 143,465 customers underestimated billing between January and September last year, while Jos Disco overbilled 1,264,537 customers to the tune of N13.3bn.
Ikeja Disco overbilled 934,438 customers by N20.9bn, as Kaduna raked in N1.14bn from the overbilling of 126,071 power users under its franchise area during the review period.
Kano Discos overbilled 71,120 customers by N196.97m during the nine month period, while Port Harcourt Disco overbilled 605,621 customers to the tune of N14.2bn between January and June, as the number of overbilled customers in July, August and September were not captured.
The Nigerian Electricity Regulatory Commission (NERC) has declared that it will 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 over their non-compliance with the capping of estimated bills for unmetered customers.
This action is in response to the power distributors’ failure to comply with the monthly energy caps issued by the commission. The commission has also issued an order for the power distribution companies to issue credit adjustments to all overbilled unmetered customers from January to September 2023 by the March 2024 billing cycle.
Additionally, the commission has directed the power distribution companies to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than March 31, 2024.
Furthermore, the commission will impose regulatory sanctions by deducting a sum of N10,505,286,072 from the annual allowed revenues of the 11 power distribution companies during the next tariff review to deter future non-compliance with the energy caps approved by the commission.
This move comes as electricity consumers nationwide continue to lodge complaints against excessive estimated bills by power distribution companies in Nigeria.
NERC report revealed that “the total number of complaints received across all Discos (distribution companies) in 2023/Q3 was 333,947; Ibadan Disco received the highest number of complaints (59,901), representing 17.93 percent of the total complaints received. Abuja Disco received the least number of complaints (1,919), representing 0.57 percent of the total complaints received.
“Compared to 2023/Q2, the number of complaints received, number of cases resolved, and average resolution rate changed by +2.47 percent (333,947 in 2023/Q3 vs. 325,898 in 2023/Q2), +1.19 percent (317,179 in 2023/Q3 vs. 313,442 in 2023/Q2), and -1.2 per cent (94.98 in 2023/Q3 vs. 96.18 in 2023/Q2) respectively.
“Benin (-47.85 percent), Jos (-26.21 percent) and Ikeja (-1.84 percent) Discos recorded decreases in the number of customer complaints received compared to 2023/Q2.
“Conversely, eight Discos recorded increases in the number of customer complaints with significant increases being recorded by Yola (+43.28 percent), Kano (+17.46 percent) and Port Harcourt (+16.05 percent).”
On the type of complaints, the report stated that “the most frequently reported issues among the 333,947 complaints received by Discos in 2023/Q3 were metering (57.31 percent), billing (12.88 per cent), and service interruption (8.07 percent).
“These three complaints categories cumulatively accounted for over 78 percent of the total complaints in the quarter. Out of the 333,947 complaints received in 2023/Q3, 317,179 were resolved, translating to a resolution rate of 94.98 percent.”
Meanwhile, the commission has reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry.
Consumers expressed optimism that the power sector regulator would ensure the enforcement of this latest sanction on Discos, with the hope that it would deter the power firms from overbilling electricity users on estimated billing.
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