The Nigerian Electricity Regulatory Commission (NERC) has announced that electricity consumers caught bypassing prepaid meters or making unauthorized connections will face penalties starting from N100,000.
This is outlined in a revised directive on unauthorized access, meter tampering, and bypass, issued on Tuesday.
The fines range between N100,000 and N300,000, depending on the consumer category. For maximum demand customers, penalties will be calculated as 450% to 600% of their last recorded energy usage if found guilty of electricity theft.
According to NERC, the Amended Order on Unauthorized Access, Meter Tampering, and Bypass replaces Order No: NERC/REG/41/2017 and came into effect on January 22, 2025.
The regulatory body explained that the revision aligns with the Electricity Act 2023 and the Customer Protection Regulations 2023, both of which permit distribution companies to disconnect illegal connections without prior notice and outline specific conditions for reconnection.
The order is aimed at curbing illegal electricity usage, ensuring clear reconnection guidelines, and promoting compliance.
“Customers found bypassing meters or making unauthorized connections will be required to pay an administrative charge covering meter replacement costs before reconnection,” the directive states.
For non-maximum demand single-phase residential users, the first offence carries a N100,000 fine, while repeat offences attract N150,000.
For non-maximum demand three-phase customers, penalties are N200,000 for the first violation and N300,000 for subsequent violations.
Meanwhile, maximum demand consumers will be fined 450% of their last recorded consumption for a first-time offence and 600% for repeat violations.
Rising Cases of Energy Theft
Recently, the Ikeja Electricity Distribution Company (IKEDC) raised concerns over increasing incidents of energy theft.
The company warned that offenders will now face legal prosecution, signaling an end to the previous practice of merely imposing financial penalties.
IKEDC’s Head of Corporate Communication, Kingsley Okotie, expressed frustration over the growing trend, especially following the revised tariff implementation on Band A feeders.
“The theft is alarming, and if it persists, we will struggle to meet customer expectations. Some people believe they won’t face consequences unless caught—this is false. We must change this mindset,” he stated.
Okotie emphasized that for Nigeria’s electricity industry to thrive, stakeholders must work together to combat theft, as it disrupts the sector’s financial stability.
Similarly, Eko Electricity Distribution Company (EKEDC) spokesperson, Babatunde Lasaki, identified meter tampering, illegal connections, and infrastructure vandalism as major challenges.
According to Lasaki, these illegal activities result in billions of naira in annual losses, ultimately hampering investments in network improvements and affecting service quality for paying customers.
EKEDC’s Acting CEO, Rekhiat Momoh, called on consumers to support efforts to eliminate electricity theft, stressing that the sector cannot sustain network expansion and upgrades while losing massive revenue to illegal connections.
“Energy theft is a serious issue, and we must eradicate it from our network. The billions lost annually affect our ability to improve infrastructure and provide stable power,” Momoh stated.
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