From David Onuoja, Abuja
In what looks like a joke due to lack of compliance, the axe of the regulatory agency again fell on Abuja Electricity Distribution Company (AEDC), also known as DisCos when The Nigerian Electricity Regulatory Commission (NERC), imposed a fine of N1.69bn on them for over billing its customers.
The NERC has in Order NERC/2024/114, issued the fine as part of the commission’s September 2024 Supplementary Order.
In what NERC described as regulatory document, ORDER/NERC/2024/114, which was dated August 30 and signed by Vice Chairman, Musiliu Oseni, and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, was published on NERC’s official website.
AEDC, was charged to pay the about due to its negligence and non-compliance with the commission’s previous order on capping estimated billing for electricity consumers.
According to the report on the website, “After investigating AEDC’s billing practices, NERC identified that the company had overcharged customers from January to September 2023, leading to the imposition of the fine which is equivalent to 10 per cent of the over billed amount.
Given the reasons further, NERC said, the fine and adjustments to AEDC’s revenue requirements and tariffs was higher than what it ought to be according to the regulations.
“we have approved the deduction of N1.69bn 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.
“Also, this fine was levied in response to complaints by consumers and subsequent investigations that revealed AEDC had not adhered to the regulatory guidelines on estimated billing”, it said.
NERC also issued directives that would improve service delivery and monitoring compliance with service-based tariffs.
“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 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, and 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.
The regulatory agency also made provisions for compensating 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,” it said.
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
