LIVE UPDATES
The Nigerian Electricity Regulatory Commission has imposed a fine of N1.69bn on Abuja Electricity Distribution Company for overbilling customers.
The penalty was issued as part of the commission's September 2024 Supplementary Order, and is based on AEDC's non-compliance with the commission's previous order on capping estimated billing for electricity consumers.
AEDC was found to have overcharged customers from January to September 2023, leading to a fine equivalent to 10% of the overbilled amount.
The regulatory document outlined the reasons for the fine and adjustments to AEDC's revenue requirements and tariffs, including a deduction of N1.69bn from AEDC's total annual operating expenses effective September 2024.
The Nigerian Electricity Regulatory Commission (NERC) imposed a fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for failing to adhere to regulatory guidelines on estimated billing, following complaints from consumers and subsequent investigations.
NERC also issued directives to AEDC to improve service delivery and ensure compliance with service-based tariffs.
It said, "AEDC must continuously monitor its service levels, especially regarding electricity supply to Band A feeders. If AEDC fails to meet the committed service level on a Band A feeder for two consecutive days, it must publish an explanation on its website by 10am the next day.
"The Supplementary Order also requires AEDC to procure a minimum of 61MW of embedded generation, with at least 30MW from renewable energy, to improve electricity supply reliability within its franchise area. This procurement must be completed by April 2025."
NERC emphasized that the measure was necessary to meet AEDC's service delivery commitments under its Service-Based Tariff framework.
NERC noted that the commission had approved new tariffs effective from September 1, 2024, regarding the adjustments to AEDC's tariffs.
The commission also made provisions for compensating customers for service failures, particularly for those on 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.
