The Nigerian Electricity Regulatory Commission (NERC) has announced stringent penalties for electricity consumers caught bypassing prepaid meters, with fines ranging from N100,000 to N300,000 depending on the customer category.
This was outlined in an amended Order on Unauthorised Access, Meter Tampering, and By-Pass, released on Tuesday. The new directive, which replaces Order No: NERC/REG/41/2017, officially took effect on January 22, 2025 and aligns with the Electricity Act 2023 and the Customer Protection Regulations 2023.
According to NERC, maximum demand customers caught engaging in energy theft will face penalties amounting to 450% to 600% of their last recorded electricity consumption. Additionally, distribution companies (DisCos) now have the authority to disconnect unauthorized connections without prior notice and outline strict reconnection conditions.
New Fine Structure for Energy Theft
The amended order introduces a tiered penalty system based on customer type:
- Non-maximum demand single-phase residential customers:
- First offence: N100,000
- Subsequent offences: N150,000
- Non-maximum demand three-phase customers:
- First offence: N200,000
- Subsequent offences: N300,000
- Maximum demand customers:
- First offence: Pay 450% of last recorded consumption
- Subsequent offences: Pay 600% of last recorded consumption
Consumers guilty of meter tampering or illegal access must also cover administrative charges, meter replacement costs, and reconnection fees before being reinstated to the electricity grid.
Rising Energy Theft Concerns
The announcement follows growing concerns from electricity providers over rampant energy theft. The Ikeja Electricity Distribution Company (IKEDC) recently raised alarms over the surge in illegal connections, especially after the implementation of new tariffs for Band A feeders.
IKEDC’s Head of Corporate Communication, Kingsley Okotie, warned that offenders would now face immediate prosecution, marking the end of mere revenue loss penalties.
“The level of energy theft is alarming, and if this trend continues, it will be difficult to meet consumer expectations,” Okotie said. “Many perpetrators believe they can escape consequences if they haven’t been caught, but this is false. We must change the narrative.”
Similarly, Eko DisCo’s spokesperson, Babatunde Lasaki, highlighted meter bypassing, illegal connections, and tampering with power infrastructure as major threats to Nigeria’s electricity sector. He stressed that these unlawful activities lead to significant revenue losses, ultimately limiting investments in infrastructure upgrades and service quality improvements.
The Acting Chief Executive Officer of EKEDC, Mrs. Rekhiat Momoh, urged customers to support efforts to combat energy theft, emphasizing that addressing the issue is critical for the long-term stability of the Nigerian power sector.
With stricter fines and legal enforcement in place, authorities hope these measures will deter illegal connections and enhance electricity service delivery nationwide.
