NERC tackles overbilling, refunds N155m to power consumers

The Nigerian Electricity Regulatory Commission paid a total of N155.84m as credit adjustments to electricity customers in 2025, following the resolution of billing-related complaints across the country’s power sector.

An analysis of the commission’s quarterly reports on Friday showed that the refunds were issued in tranches throughout the year as distribution companies resolved verified overbilling and related disputes raised by consumers.

The breakdown indicated that customers received N32.21m in the first quarter, N40.22m in the second quarter, N32.66m in the third quarter, and N50.75m in the fourth quarter, reflecting a steady intervention by the regulator to address billing concerns in the Nigerian Electricity Supply Industry.

The refunds were tied directly to complaints lodged through the commission’s Customer Complaint Unit, a mechanism established under the Electricity Act 2023 to ensure consumer protection and enforce accountability among power distribution companies.

Data from the commission showed that billing disputes remained the single largest trigger for customer complaints, accounting for between 29 and 37 per cent of total cases recorded across the four quarters.

In the first quarter alone, the commission received 4,169 complaints, out of which only 1,554 were resolved, translating to a resolution rate of 37.27 per cent.

Explaining its mandate, the commission stated, “In furtherance of its mandate as contained in Section 119(1)(c) of the Electricity Act 2023, the commission shall develop, in consultation with licensees, the customer complaints handling standard and procedure, and provide various channels for customers to lodge complaints against their service providers.”

It added, “The primary channels available for customers to lodge complaints in the Nigerian Electricity Supply Industry include the NERC Customer Complaint Unit, where complaints can be received via emails, letters, or phone calls through the NESI Call Centre, after which such complaints are transmitted to the DisCos responsible for resolution.”

Reacting to this, the regulator said, “The commission notes the poor resolution rate (37.27 per cent) of complaints lodged at the NERC-CCU in 2025/Q1 and is taking steps to improve the speediness of complaint resolution by DisCos, as timely redress remains critical to consumer confidence in the power sector.”

It further noted that, “Customer complaints about billing constituted 37.37 per cent of the total complaints received during the quarter, while metering issues accounted for 32.00 per cent and service interruptions 13.65 per cent, with these three categories cumulatively representing over 83 per cent of all complaints.”

Subsequent quarters showed a marked improvement in complaint resolution by DisCos, with resolution rates rising steadily to 45.63 per cent in Q2, 62.30 per cent in Q3, and 76.96 per cent in Q4.

Highlighting the improvement, the commission stated in the second quarter report, “Of the 2,474 complaints lodged at the NERC-CCU during the quarter, 1,129 were satisfactorily resolved by DisCos, corresponding to a 45.63 per cent resolution rate, which represents an improvement compared to the 37.27 per cent recorded in the previous quarter.”

It added, “The commission notes the improvement in the complaint resolution rate by DisCos and will continue to take steps to enhance the speed of complaint resolution, including closer monitoring and enforcement actions where necessary.”

In the final quarter, the commission reported its strongest performance yet, stating, “Of the 829 complaints lodged at the NERC-CCU, 638 were satisfactorily resolved, corresponding to a 76.96 per cent resolution rate, with some DisCos such as Kano and Kaduna achieving 100 per cent resolution.”

It stressed, “The commission will continue to strengthen oversight and enforcement mechanisms to ensure that DisCos meet required standards in customer complaint resolution and service delivery.”

The number of complaints recorded dropped significantly during the year, falling from 4,169 in Q1 to 2,474 in Q2, and further to 833 and 829 in Q3 and Q4, respectively.

Explaining the sharp decline, the commission said, “The significant decrease in the number of complaints reported to have been filed at the DisCo-CCUs is because the commission has discontinued reporting of customer complaints in states that have established State Electricity Regulatory Agencies.”

This development reflects the gradual decentralisation of electricity regulation across Nigeria following recent reforms.

No fewer than 15 states have already transitioned to independent market oversight, even as 21 states, including Rivers and Kano, are yet to assume regulatory control of their electricity markets nearly three years after the enactment of the Electricity Act 2023.

The reports also revealed disparities in performance among distribution companies. The commission noted, “Customers of Ikeja and Eko DisCos consistently accounted for a significant proportion of total complaints lodged at the NERC-CCU, indicating persistent service delivery and billing challenges in those franchise areas.”

Conversely, it stated, “Some utilities such as Kano DisCo and Aba Power recorded the lowest number of complaints, though variations in customer base and reporting structures may account for these differences.”

On resolution performance, the regulator added, “While some DisCos recorded resolution rates above 80 per cent, others lagged significantly, underscoring the need for continuous regulatory oversight and enforcement.”

Nigeria’s power sector has long struggled with estimated billing, metering gaps, and erratic supply, which have remained key sources of friction between consumers and electricity providers.

The Electricity Act 2023 expanded the powers of the regulator and introduced reforms aimed at strengthening consumer protection.

Reiterating its role, the regulator stated, “The commission remains committed to ensuring that electricity consumers are protected from unfair practices, and that appropriate compensation mechanisms, including billing adjustments, are implemented where service providers are found to be at fault.”

While the N155.84m refunded may appear modest relative to the size of the power sector, it underscores a growing regulatory push to enforce accountability.

More importantly, the steady rise in complaint resolution rates suggests that regulatory enforcement may be beginning to yield results, even as systemic challenges persist.

As the commission put it, “Timely resolution of customer complaints and appropriate redress mechanisms are essential to improving service delivery and building trust in the Nigerian Electricity Supply Industry.”