Abuja Disco Incurs N1.69bn Fine For Over-Billing Customers

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The Nigerian Electricity Regulatory Commission (NERC) has levied a substantial fine of ₦1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. 

This penalty, detailed in Order NERC/2024/114, was issued as part of the commission’s September 2024 Supplementary Order.

The document, dated August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, was published on NERC’s website on Thursday.

NERC imposed the fine due to AEDC’s failure to comply with previous directives concerning the capping of estimated electricity bills.

An investigation revealed that AEDC had overcharged its customers from January to September 2023, prompting the fine, which represents 10 percent of the total overbilled amount.

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

The commission has mandated a deduction of ₦1.69 billion from AEDC’s annual operating expenditure starting September 2024, corresponding to 10 percent of the overbilled amount.

This penalty follows consumer complaints and subsequent investigations that demonstrated AEDC’s non-compliance with the regulatory guidelines on estimated billing.

In addition to the fine, NERC has issued directives aimed at enhancing service delivery and ensuring compliance with service-based tariffs.

AEDC is now required to continually monitor its service levels, particularly for electricity supply to Band A feeders.

Should AEDC fail to meet the committed service levels on a Band A feeder for two consecutive days, it must publish an explanation on its website by 10 a.m. the following day.

The Supplementary Order also obligates AEDC to secure at least 61 megawatts (MW) of embedded generation capacity, including a minimum of 30 MW from renewable sources, to enhance the reliability of electricity supply within its franchise area.

This procurement must be completed by April 2025.

To align with AEDC’s service delivery commitments under its Service-Based Tariff framework, NERC has approved new tariffs effective September 1, 2024.

Additionally, NERC has stipulated provisions for compensating customers for service failures, particularly those on Band A feeders.

AEDC is required to provide compensation to affected customers listed in Appendix 3 for failures to deliver between 18 and 20 hours of average supply.

The Supplementary Order, effective until a new tariff review is issued, underscores NERC’s dedication to enforcing regulatory compliance and protecting consumers from unfair billing practices.

Meanwhile, the Central Bank of Nigeria (CBN) has announced a new rule to make transactions safer and more transparent.

By the new regulation, all payments made through Point of Sale (PoS) machines must go through a special company called a Payment Terminal Service Aggregator (PTSA).