……by Ben Ndubuwa……..
In a significant regulatory action, the Nigerian Electricity Regulatory Commission (NERC) has slapped a hefty fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. This decision, formalized in Order NERC/2024/114, was announced as part of NERC’s September 2024 Supplementary Order.
The fine, equivalent to 10 percent of the overbilled amount, was detailed in a regulatory document dated August 30, signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye. It was published on NERC’s website on Thursday.
The penalty arises from AEDC’s failure to comply with a previous NERC directive aimed at capping estimated electricity billing. An investigation revealed that AEDC had overcharged customers between January and September 2023. This led to the substantial fine, which will be deducted from AEDC’s annual operating expenditure effective September 2024.
The September 2024 Supplementary Order also introduces significant adjustments to AEDC’s revenue requirements and tariffs. NERC has mandated AEDC to enhance its service delivery and compliance with service-based tariffs. Specifically, the company is required to monitor and report any service failures on Band A feeders, and procure at least 61 megawatts of embedded generation capacity by April 2025, with 30 megawatts sourced from renewable energy.
Additionally, AEDC’s tariffs have been revised effective September 1, 2024, and provisions for compensating customers affected by service failures have been put in place. The regulatory body emphasized that AEDC must make appropriate compensations to customers on Band A feeders who experience significant service disruptions.
NERC’s actions reflect its ongoing commitment to enforcing regulatory standards and protecting consumers from unfair billing practices. The Supplementary Order will remain in effect until further notice, reinforcing NERC’s stance on ensuring adherence to service delivery commitments within the electricity sector.