The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69bn on Abuja Electricity Distribution Company for outrageous billing of customers.
According to a statement on NERC’s website on Thursday, the penalty documented in Order NERC/2024/114, was issued as part of the commission’s September 2024 Supplementary Order.
The 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 the Commission’s website on Thursday.
NERC said the fine bordered on AEDC’s non-compliance with the Commission’s previous order on capping estimated billing for electricity consumers.
It added that while investigating AEDC’s billing practices, it identified that the company had overcharged customers from January to September 2023, which led to the imposition of the fine which is equivalent to 10 per cent of the overbilled amount.
The regulatory document titled September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC, highlighted the reasons behind the fine and adjustments to AEDC’s revenue requirements and tariffs.
The Commission stated that it had “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.”
The 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.
NERC’s order emphasised that “the Commission had approved the deduction of N1.69bn from AEDC’s annual operating expenditure as a penalty for non-compliance with the order on capping estimated bills.”
In addition to the fine, NERC also issued directives aimed at improving service delivery and monitoring compliance with service-based tariffs.
