NERC fines Abuja DisCo N1.69b for overbilling customers

The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Company (AEDC) N1.69 billion for overbilling its customers. This penalty was issued under Order NERC/2024/114, part of NERC’s September 2024 Supplementary Order.

The fine, dated August 30 and signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, was published on NERC’s website on Thursday. It addresses AEDC’s failure to comply with previous regulations on capping estimated billing for electricity consumers.

Following an investigation into AEDC’s billing practices, NERC discovered that the company had overcharged its customers from January to September 2023. The fine represents 10 percent of the overbilled amount.

The regulatory document, titled the September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC, details the reasons for the fine and outlines adjustments to AEDC’s revenue requirements and tariffs.

NERC, in the document, noted that the commission has approved the deduction of N1.69 billion from AEDC’s annual operating expenditure effective September 2024, representing 10 percent of the overbilled amount for the period covering January to September 2023.

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This action follows consumer complaints and investigations revealing AEDC’s non-compliance with regulatory guidelines on estimated billing.

In addition to the fine, NERC has issued directives to enhance service delivery and ensure compliance with service-based tariffs. AEDC is now required to continuously monitor its service levels, particularly for electricity supply to Band A feeders.

“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 10am publish on its website an explanation of the reasons for the failure,” the order specified.

The Supplementary Order also mandates AEDC to procure at least 61MW of embedded generation, with a minimum of 30MW from renewable sources, to improve electricity supply reliability within its franchise area. This procurement must be completed by April 2025.

NERC also approved new tariffs effective September 1, 2024, and provisions for compensating customers, particularly those on Band A feeders, for service failures.

“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.

The Supplementary Order, which remains in effect until a new tariff review is issued, underscores NERC’s commitment to enforcing regulatory compliance and protecting consumers from unfair billing practices.