NERC fines Abuja, Ikeja DisCos ₦3.10 billion for overcharging customers

The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of ₦3.10 billion on the Abuja Electricity Distribution Company (AEDC) and the Ikeja Electricity Distribution Company (IE) for overcharging their customers.

According to the power industry watchdog, the fine was based on the DisCos’ non-compliance with the commission’s earlier order on capping estimated bills for electricity consumers.

The penalty is contained in the documented ‘NERC Order/2024/114’ issued by the commission.

Giving details, NERC said AEDC was fined ₦1.69 billion while IE was fined ₦1.41 billion.

The fine is part of the commission’s September 2024 Supplementary Order, dated August 30 and signed by Deputy Chairman, Musiliu Oseni, and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, which was published on the NERC website on Thursday.

After investigating AEDC’s billing practices, NERC identified that the company had overcharged customers from January to September 2023, resulting in the imposition of a penalty equal to 10 percent of the overcharged amount.

The document outlines the rationale behind the fines and adjustments to AEDC revenue and rate requirements.

“In accordance with the Commission’s order NERC/2024/04 on non-compliance with the limitation on estimated billing, and the subsequent hearing of the petition and data further provided by AEDC, the commission approves a reduction of N1.69 billion from AEDC’s total annual OpEx with effect from September 2024, which is 10 per cent of the amount of excess billing by AEDC for the period covering January-September 2023.”

ALSO READ:NERC gives April 11 deadline to DisCoS to refund wrongly billed customers

“In accordance with the Commission’s order NERC/2024/04 on non-compliance with the limitation on estimated billing, and the subsequent hearing of the petition and data further provided by AEDC, the commission approves a reduction of N1.41 billion from IE’s total annual OpEx with effect from September 2024, which is 10 per cent of the amount of excess billing by IE for the period covering January-September 2023.”

In addition to fines, NERC also issued directives aimed at improving service delivery and monitoring compliance with service-based tariffs.

AEDC, IE is required to ensure continuous monitoring of its service levels, particularly with regard to electricity supply to Band A feeders.

The Additional Order, which will remain in effect until a new rate review is issued, underscores NERC’s commitment to ensuring that electric distribution companies comply with regulatory guidelines while protecting consumers from unfair billing practices.

“If AEDC, IE fails to provide services as committed to the Band A feeder for two consecutive days, AEDC, IE must on the following day no later than 10 am publish on its website an explanation of the reasons for the failure,” the order said.

The Additional Order also mandates AEDC, IE to procure a minimum of 61MW, 60MW of embedded generation, with at least 30MW sourced from renewable energy, to enhance the reliability of electricity supply within its franchise area.

This capacity procurement must be completed by April 2025.

NERC also makes provisions for compensation to customers for service failures, particularly for those using Band A feeders.

“AEDC, IE shall provide appropriate compensation to the affected customers in Band A feeders listed in Annexure 3 for failure to deliver up to 20 hours of average supply but more than 18 hours of average supply,” the order read.

By: Babajide Okeowo

The post NERC fines Abuja, Ikeja DisCos ₦3.10 billion for overcharging customers appeared first on Latest Nigeria News | Headlines from Ripples Nigeria.