The Nigerian Electricity Regulatory Commission (NERC) has ordered the Enugu Electricity Distribution Company (EEDC) to refund N11.8 billion to 1,011,402 customers in Southeastern Nigeria who were over-billed between January and September 2023.
NERC stated that during the February 2024 billing cycle, EEDC must credit the accounts of all affected customers.
“EEDC shall reconcile the accounts and issue credit adjustments for all customers that were over-billed between January-September 2023,” NERC directed.
The regulator expressed concern over EEDC’s persistent non-compliance with the capping of estimated bills, which led to widespread customer dissatisfaction and affected government revenue. This non-compliance contributed to customer reluctance to pay their bills, worsening liquidity issues in the Nigerian Electricity Supply Industry (NESI).
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According to NERC, EEDC over-billed customers by N11,866,263,420.31 during the nine-month period. The monthly over-billings included 203,375 customers over-billed by N1.93 billion in September, 188,298 customers over-billed by N1.75 billion in August, and 169,867 customers over-billed by N1.7 billion in July.
To enforce compliance, NERC has set a 14-day deadline for EEDC, which expired in August 2023.
NERC warned, “The continuous failure of EEDC to adhere to the commission’s monthly caps for estimated billing has led to significant over-billing of customers.”
NERC has mandated EEDC to publish the list of credit adjustment beneficiaries in two national dailies and on its website by March 31, 2024. Additionally, EEDC must submit its February 2024 billing data to NERC as evidence of compliance.
To prevent future non-compliance, NERC ordered a deduction of N1.19 billion, equivalent to 10% of the total over-billing amount, from EEDC’s annual operational expenses over the next 12 months during the next tariff review. NERC warned that if non-compliance persists, a greater percentage of the over-billing amount may be deducted from EEDC’s administrative expenses.