THE Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69 billion on Abuja Electricity Distribution Company (AEDC) for “crazy billing” practices. This regulatory action aims to protect consumers from unfair billing practices and ensure compliance with industry standards.
Key Details:
- Fine Amount: NERC has approved the deduction of N1.69 billion from AEDC’s total annual operating expenditure as a fine for violating regulatory rules.
- “Crazy Billing” Practices: The fine is related to AEDC’s billing practices, which were deemed unfair and not in line with regulatory standards.
Regulatory Impact:
- Consumer Protection: NERC’s action demonstrates its commitment to protecting electricity consumers from unfair practices and ensuring that distribution companies operate transparently.
- Industry Compliance: The fine serves as a warning to other distribution companies to comply with regulatory rules and guidelines.
Future Implications:
- Improved Services: The regulatory action may lead to improved services and billing practices by AEDC and other distribution companies.
- Enhanced Consumer Trust: NERC’s enforcement of regulatory rules can help restore consumer trust in the electricity distribution sector
The fund, the report said, shall be centrally managed and can also be used to securitise vendor financing and other Public Private Partnership (“PPP”) arrangements to fund.
The DisCo is obligated by the order to also procure a minimum of 61 megawatts (MW) capacity of embedded generation, which is 10 percent of its 2024 load allocation, it said.
According to NERC, this will improve the reliability of supply and sustain delivery of a minimum service level under the service-based tariff (SBT).
It said a minimum of 30MW (i.e., 50%) of the embedded generation capacity must be sourced from renewable energy sources, adding that the required capacity may be procured in bulk or distributed across AEDC’s franchise area.
