The Nigerian Electricity Regulatory Commission has imposed a hefty fine of N1.69 billion on the Abuja Electricity Distribution Company for overcharging its customers, violating the commission’s regulations on estimated billing.
This fine was issued under a supplementary order by NERC, titled September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC.
According to the commission, the penalty followed AEDC’s failure to comply with previous directives aimed at capping estimated billing for electricity consumers.
The regulatory document, identified as Order NERC/2024/114 and dated August 30, 2024, was signed by NERC’s Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye. It was made public on NERC’s official website on Thursday.
The fine, which amounts to 10 per cent of the overbilled amount, was enforced after an investigation revealed that AEDC had overcharged its customers from January to September 2023.
“The commission has approved the deduction of N1.69bn from AEDC’s total annual operating expenditure, effective September 2024, being 10 per cent of the overbilled amount for the period under review,” the document stated.
NERC emphasized that the penalty was in response to numerous consumer complaints and subsequent investigations which confirmed that AEDC failed to follow the regulatory guidelines on estimated billing.
In addition to the fine, NERC issued further directives to AEDC, including monitoring service levels and ensuring compliance with service-based tariffs.
The order mandates that AEDC should publish explanations on its website whenever it fails to deliver committed service levels on its Band A feeders for more than two consecutive days.
Furthermore, the commission required AEDC to procure at least 61MW of embedded generation capacity, with at least 30MW from renewable energy sources, by April 2025, to enhance electricity reliability within its franchise area.
NERC noted, “This measure is necessary to ensure AEDC meets its service delivery commitments under the Service-Based Tariff framework.”
As part of efforts to improve service delivery, NERC also approved new tariffs for AEDC, effective from September 1, 2024.
These tariffs will remain in effect until a new review is conducted. Provisions for compensating customers were also included, particularly for those in Band A feeders who receive less than 20 hours of average electricity supply.
“AEDC shall make appropriate compensation to the affected customers in Band A feeders listed in Appendix 3 for failure to deliver up to 20 hours of average supply but more than 18 hours,” the order stated.
