A Review of the Nigerian Energy Industry

Overbilling: NERC orders power firm to refund consumers

17 June 2015, Abuja –

The Nigerian Electricity Regulatory Commission has ordered the Abuja Electricity Distribution Company to refund consumers for overbilling them within the months of October to December, 2014.

Dr. Sam Amadi

In an order signed by the Chairman of NERC, Dr. Sam Amadi, and the Commissioner, Legal and Enforcement, Dr. Steven Andzenge, the commission said the refund should be in the form of energy credit.

Amadi said all the affected customers must be informed in writing by the electricity distribution company advising them on the energy credits, accruing to them as a result of the overbilling that occurred when the company implemented the modified estimated billing methodology without the approval of the regulator.

He said, “The AEDC shall, with immediate effect from the date of this order, commence the refund through energy credit, of all excess charges billed its customers as a direct consequence of the adjustments resulting from the application of the modified estimated billing methodology applied to all customers in their business units for the period of October, November and December 2014.

“The AEDC shall within five days of this order and in writing advice all affected customers in accordance with Regulation 9(7) of the Nigerian Electricity Regulatory Commission’s Meter Reading, Billing, Cash Collections and Credit Management for Electricity Suppliers Regulations, 2007.”

He added, “The AEDC shall within one month of this order publish in a newspaper with wide circulation within its distribution area, an apology to all affected customers stating their business units for the excess charges billed.

“Following the steps in one to three, the AEDC shall within two months of the order submit a report to the committee on the level of compliance with the orders in one to three providing specific data on the total number of customers affected and the amount refunded in each business unit.”

NERC had on April 16 written the distribution company to show cause why it should not be sanctioned for violating several sections of the of the electricity law.

According to NERC, the reply of the AEDC to the query was not satisfactory; thus the sanction dished out by the regulatory agency.


– Punch

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