Nigeria’s Electricity Regulator (NERC) Slaps Abuja Electricity Distribution Company with N1.69 Billion Fine for Overbilling
The Nigerian Electricity Regulatory Commission (NERC) has imposed a significant fine on Abuja Electricity Distribution Company (AEDC) for overbilling customers. The fine, amounting to N1.69 billion, is the result of AEDC’s non-compliance with NERC’s previous order on capping estimated billing for electricity consumers.
According to NERC’s investigation, AEDC overcharged customers from January to September 2023, leading to the imposition of the fine, which is equivalent to 10% of the overbilled amount. The commission’s order, dated August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner Dafe Akpeneye, was published on NERC’s website on Thursday.
The fine is a result of complaints from consumers and subsequent investigations that revealed AEDC had not adhered to regulatory guidelines on estimated billing. NERC has approved the deduction of N1.69 billion from AEDC’s annual operating expenditure as a penalty for non-compliance.
In addition to the fine, NERC has issued directives aimed at improving service delivery and monitoring compliance with service-based tariffs. AEDC is required to ensure continuous monitoring of its service levels, particularly regarding electricity supply to Band A feeders. The company must also publish an explanation on its website if it fails to deliver on committed service levels for consecutive two days.
Furthermore, NERC has mandated AEDC to procure a minimum of 61MW of embedded generation, with at least 30MW sourced from renewable energy, to improve the reliability of electricity supply within its franchise area. The procurement of this capacity must be completed by April 2025.
The regulatory body has also approved new tariffs effective from September 1, 2024, and made provisions for compensating customers for service failures, particularly for those on Band A feeders.
The September 2024 Supplementary Order underscores NERC’s commitment to ensuring that electricity distribution companies adhere to regulatory guidelines while protecting consumers from unfair billing practices. The order will remain in effect until a new tariff review is issued.
The fine and directives are a significant development in the ongoing efforts to improve the electricity sector in Nigeria. The move is expected to promote transparency and accountability in the sector, ultimately benefiting consumers who have been subjected to unfair billing practices in the past.
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