Revoke Licences Of Discos Charging Outrageous Bills, FCCPC Urges NERC

The Federal Competition and Consumer Protection Commission (FCCPC) on Monday mandated the Nigerian Electricity Regulatory Commission (NERC) to revoke the licences of electricity Distribution Companies (Discos) that are over billing unmetered customers.

The order by FCCPC was given, after NERC in various regulatory interventions for non-compliance with the Order on Capping of Estimated Billing to Unmetered Customers, issued to 11 Discos, established that the power distributors recorded over N105bn as a result of over-billing.

The Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port-Harcourt, and Yola Discos overbilled about 7.1 million unmetered electricity consumers from January to September 2023.

The development prompted NERC to announce that N10.5bn would be deducted from the annual allowed revenues of the 11 Discos during the next tariff review as part of sanctions over their non-compliance with the capping of estimated bills for unmetered customers.

Following the sanction by NERC on Discos, the Acting Vice Chairman and Chief Executive Officer of FCCPC Adamu Abdullahi in Abuja said the regulatory body must incorporate stringent measures to defaulting Discos.

He said, “The Federal Competition and Consumer Protection Commission (FCCPC) commends the Nigerian Electricity Regulatory Commission (NERC) for its recent action against eleven Electricity Distribution Companies (Discos) for non-compliance with the capping of estimated bills for unmetered customers.

“This decisive measure aligns with the FCCPC’s mandate outlined in the Federal Competition and Consumer Protection Act (FCCPA) 2018, particularly Section 17 (s), which empowers the Commission to protect consumers from obnoxious practices or unscrupulous exploitation by companies, firms, trade associations or individuals, and to demand redress on their behalf.

“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.

“We urge NERC to consider even stronger measures to deter future violations. This could include increased financial penalties, stricter enforcement mechanisms, and even the revocation of operating licenses for persistent offenders” Abdullahi said.

Abdullahi assured that the existing Memorandum of Understanding (MoU) between FCCPC and NERC will ensure more effective protection for electricity consumers through information sharing, joint investigations, and coordinated enforcement actions.

He also urged consumers shortchanged by estimated bills to come forward and lodge complaints with their respective Discos, to NERC or the FCCPC.

“We are committed to investigating all legitimate complaints and redress necessary to address the systemic challenges facing the sector, including metering gaps, billing malpractices, and inadequate customer service.

“The FCCPC will persistently collaborate with NERC to work tirelessly to ensure that Nigerian electricity consumers receive fair treatment, accurate billing, and quality service,” he added.