NERC tackles overbilling, refunds N155m to power consumers

NERC tackles overbilling, refunds N155m to power consumers

NERC tackles overbilling, refunds N155m to power consumers

The Nigerian Electricity Regulatory Commission (NERC) refunded a total of ₦155.84 million to electricity consumers in 2025 after tackling widespread overbilling by distribution companies (DisCos).

The refunds were issued in tranches across the year, highlighting NERC’s growing enforcement of consumer protection under the Electricity Act 2023.

The Nigerian Electricity Regulatory Commission (NERC), the body responsible for regulating Nigeria’s power sector, has intensified its oversight of billing practices among DisCos.

Overbilling has long been a major source of consumer frustration, particularly for unmetered customers who often face arbitrary charges. In response, NERC has leveraged its Customer Complaint Unit (CCU), established under the Electricity Act 2023, to ensure accountability and provide redress for consumers.

Refund Breakdown: In 2025, NERC facilitated refunds amounting to ₦155.84 million, distributed quarterly as follows:  

- ₦32.21 million in Q1  

- ₦40.22 million in Q2  

- ₦32.66 million in Q3  

- ₦50.75 million in Q4  

This steady intervention reflects NERC’s commitment to resolving verified billing disputes and restoring consumer confidence in the Nigerian Electricity Supply Industry (NESI).

Billing disputes remained the largest trigger for customer complaints, accounting for between 29% and 37% of all cases across the four quarters. In Q1 alone, NERC received 4,169 complaints, but only 1,554 were resolved, representing a resolution rate of 37.27%.

Other major complaints included metering issues (32%) and service interruptions (13.65%), together with billing disputes making up over 83% of all complaints.

NERC’s mandate under Section 119 (1)(c) of the Electricity Act 2023 requires it to develop customer complaint handling standards and procedures in consultation with licensees.

Complaints can be lodged via emails, letters, or phone calls through the NESI Call Centre, after which they are transmitted to the relevant DisCos for resolution. However, NERC has acknowledged the poor resolution rate and is working to improve the speed and efficiency of complaint handling.

Beyond refunds, NERC has also sanctioned several DisCos for failing to comply with billing regulations. In April 2025, eight DisCos, including Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola, were penalized for overbilling unmetered customers.

The Commission imposed fines totaling ₦628 million and mandated credit adjustments to affected customers, reinforcing its stance on transparency and fairness in the sector.

For consumers, these interventions mean:  

- Greater accountability from DisCos in billing practices.  

- Refunds and credit adjustments for verified cases of overbilling.  

- Improved complaint channels through NERC’s CCU and NESI Call Centre.  

- A stronger push toward metering initiatives, reducing reliance on estimated billing.  

The ₦155 million refund underscores NERC’s proactive role in safeguarding consumer rights and addressing systemic issues in Nigeria’s electricity sector.

While challenges remain, particularly in complaint resolution rates, the Commission’s actions signal a new era of regulatory enforcement aimed at building trust and fairness in the power industry.