THE Nigerian Electricity Regulatory Commission (NERC) has slammed a substantial fine of N1.69bn on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers.
This penalty, was 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, representing 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.
The ICIR has earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) has backed NERC for sanctioning erring Discos which infringed on the customers’ rights.
The FCCPC also seeks stronger sanctions for erring DisCos to deter future violations.
The ICIR, it would be recalled, reported that NERC, as part of its regulatory role, earlier sanctioned 11 DisCos for overbilling their customers.
Industry watchers are also further seeking stronger sanctions for the DisCos to protect the consumers who always bear the brunt of arbitrary billing.
“The sanctions will impact the efficiency of AEDC in terms of delivering the quality of service required by its customers for running business,” a power sector governance expert, Oyebode Fadipe told The ICIR.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.