The Nigerian Electricity Regulatory Commission has slammed a substantial fine of N1.69bn on the Abuja Electricity Distribution Company for overbilling its customers.
This penalty, detailed in Order NERC/2024/114 and published on NERC’s website on Thursday, is part of the Commission’s September 2024 Supplementary Order.
Issued on August 30, the order, signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, follows a comprehensive investigation into AEDC’s billing practices.
According to the Order, NERC found that AEDC had overcharged its customers between January and September 2023, prompting the hefty fine, which represents 10 per cent of the overbilled amount.
The regulatory document outlines that AEDC’s annual operating expenditure will be reduced by N1.69bn effective September 2024.
This penalty, NERC noted, is a response to AEDC’s non-compliance with previous directives aimed at capping estimated billing for electricity consumers.
To this end, NERC had mandated a series of corrective measures for AEDC.
With the measures, AEDC is required to enhance its service delivery and adhere to service-based tariffs.
Also, the company must publish explanations on its website within 24 hours if it fails to provide a committed level of service on Band A feeders for two consecutive days.
The Order also mandated AEDC to procure at least 61 megawatts (MW) of embedded generation capacity, with a minimum of 30MW sourced from renewable energy, by April 2025.
This initiative, NERC noted, would bolster the reliability of electricity supply within AEDC’s service area.
The Supplementary Order also introduced new tariffs, effective from September 1, 2024.
It includes provisions for compensating customers affected by service failures, particularly those on Band A feeders, where compensation will be provided for failures leading to average supply below 20 hours but above 18 hours.
.