By Adedapo Adesanya
The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69 billion on Abuja Electricity Distribution Company (AEDC) for overbilling customers in its franchise areas.
According to NERC, the fine is based on AEDC’s non-compliance with the commission’s previous order on capping estimated billing for electricity consumers.
The penalty was contained in documented Order NERC/2024/114 issued by the agency to the disco which serves the Federal Capital Territory Abuja, Kogi, Niger, and Nassarawa States.
The fine is part of the organisation’s September 2024 Supplementary Order, dated August 30 and signed by Vice Chairman, Mr Musiliu Oseni, and Commissioner, Legal, Licensing and Compliance, Mr Dafe Akpeneye.
NERC said its investigation revealed that the disco overcharged customers from January to September 2023, leading to the imposition of a fine equivalent to 10 per cent of the overbilled amount.
The document outlined the reasons behind the fine and adjustments to AEDC’s revenue requirements and tariffs.
NERC said it had “approved the deduction of N1.69 billion from the total annual OpEx of AEDC effective September 2024, being 10 per cent of the overbilled amount by AEDC for the period covering January-September 2023.”
In addition to the fine, NERC issued directives to improve service delivery and monitor compliance with service-based tariffs.
AEDC is required to continuously monitor its service levels, particularly regarding electricity supply to Band A feeders.
The Supplementary Order, which will remain in effect until a new tariff review is issued, underscores NERC’s commitment to ensuring that electricity distribution companies adhere to regulatory guidelines while protecting consumers from unfair billing practices.
“Where AEDC fails to deliver on the committed level of service on a Band A feeder for consecutive two days, AEDC shall on the next day by 10 am publish on its website an explanation of the reasons for the failure,” the order specified.
The Supplementary Order also 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.
NERC emphasised that this measure was necessary to meet AEDC’s service delivery commitments under its Service-Based Tariff framework.
Regarding the adjustments to AEDC’s tariffs, NERC noted that the commission had approved new tariffs effective from September 1, 2024.
NERC also made provisions to compensate customers for service failures, particularly for those on Band A feeders.
“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 of average supply,” the order stated.
Modupe Gbadeyanka