New NERC Order: Meter Bypass to Attract Fines Up to N300,000

The Nigerian Electricity Regulatory Commission (NERC) has introduced new penalties for individuals and businesses found guilty of bypassing electricity meters. The revised ‘Order on Unauthorised Access, Meter Tampering, and By-pass,’ posted on NERC’s X page on Tuesday, aims to strengthen enforcement against electricity theft and ensure compliance with metering regulations. The new order took effect on January 22.

NERC stated that the amendment aligns with the Electricity Act 2023 and the Customer Protection Regulations (CPR) 2023. These regulations empower Distribution Companies (DisCos) to disconnect unauthorised connections without prior notice and establish conditions for reconnection. The order is designed to reduce meter tampering and illegal electricity access while setting clear reconnection guidelines.

Customers found guilty of bypassing meters or gaining unauthorised access will be required to pay administrative charges, which include meter replacement costs and reconnection fees. For non-maximum demand (Non-MD) residential customers, the penalties are structured as follows: single-phase meters will attract a fine of N100,000 for a first offence and N150,000 for subsequent offences, while three-phase meters will incur a penalty of N200,000 for the first offence and N300,000 for any repeat offence.

For maximum demand (MD) customers, the first offence will result in a charge of 450 percent of the last recorded electricity consumption, with subsequent offences incurring a 600 percent charge. Additionally, reconnection fees have been set at N10,000 for Non-MD customers and N50,000 for MD customers.

To ensure accountability, NERC also introduced compensation for delayed reconnection. If a DisCo fails to reconnect a customer within 48 hours after payment, it must compensate the customer with energy credit equivalent to 100 percent of daily energy consumption.

Customers found guilty of unauthorised access will also be required to pay for revenue losses through back-billing at the prevailing tariff rate. The commission recently reported that issues related to metering, billing, and service interruptions accounted for 70.28 percent of customer complaints received across all power distribution companies in the third quarter of 2024.