Justice at Last: NERC Fines Electricity Distribution Company for Overbilling Customers
- The Nigerian Electricity Regulatory Commission fined Abuja Electricity Distribution Company N1.69 billion for overcharging customers
- AEDC's non-adherence to the commission's prior directive regarding the limitation of projected billing for power users is the reason for the fine
- This occured after the commission reminded Nigerians to update their meters before the deadline of November 2024
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Abuja Electricity Distribution Company (AEDC) has been fined ₦1.69 billion by the Nigerian Electricity Regulatory Commission for overcharging customers.
Source: Getty Images
As per NERC's statement, the fine is due to AEDC's disregard for the commission's previous order restricting projected billing for power users.
The fine was specified in the official "Order NERC/2024/114" that the commission issued.
The fine is included in the September 2024 Supplementary Order of the commission, which was obtained from NERC's website. It was dated August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye.
Following NERC's investigation of AEDC's billing procedures, the organisation was found to have overcharged customers between January and September 2023. As a result, a fine equal to 10% of the overcharged sum was imposed.
The document outlined the reasons behind the fine and adjustments to AEDC’s revenue requirements and tariffs.
According to NERC, it has approved the deduction of N1.69 billion, or 10% of the overcharged amount by AEDC for the January–September 2023 period, from the company's total annual OpEx, starting in September 2024.
NERC’s order emphasised,
“The commission has 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.”
NERC not only imposed the fine but also issued guidelines with the goal of enhancing service delivery and overseeing adherence to service-based prices.
Oke Temitope, an electricity consumer told Legit.ng how he pays too much for someone in Band B.
He said,
"The electricity bill these days is really something else. The authorities should look into the operations of every DisCos and make sure that overbilling stops."
NERC issues warning to Nigerians using prepaid meters
Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has again reminded Nigerians to update their meters before the deadline of November 2024.
The Commission released the message through its official X account on Tuesday, August 8, 2024, urging electricity consumers to take action before the deadline.
The commission warned that after the deadline, consumers who fail to upgrade may not be able to recharge their electricity.
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Source: Legit.ng
