The Nigerian Electricity Regulatory Commission (NERC) has mandated the Enugu Electricity Distribution Company (EEDC) to refund excess charges to 1,011,402 customers in Southeastern Nigeria. This refund covers the period from January to September 2023, during which customers were overbilled due to overestimation.
According to NERC, EEDC is required to credit the accounts of affected customers in the February 2024 billing cycle. This directive follows an assessment detailed in Schedule 1, revealing widespread non-compliance by EEDC with the capping of estimated bills during the specified period.
The regulatory body expressed concern over EEDC’s persistent disregard for the capping order, leading to significant customer dissatisfaction and negatively impacting government revenue. This non-compliance has exacerbated customer reluctance to pay bills and contributed to financial instability within the Nigerian Electricity Supply Industry (NESI).
NERC’s investigation, detailed in order no 2024/006, found that customers were overbilled a total of N11,866,263,420.31 between January and September 2023. Specific figures included N1,933,495,624 overbilled in September for 203,375 customers, N1,745,269,356 in August for 188,298 customers, and N1,700,205,554 in July for 169,867 customers, among others.
To ensure compliance, NERC has outlined several mandates:
1. Credit Adjustments: EEDC must reconcile and adjust the accounts of overbilled customers in the February 2024 billing cycle, based on NERC’s assessment in Schedule 1.
2. Submission of Data: EEDC must submit billing data for February 2024 and any other relevant information to NERC by March 31, 2024, as evidence of compliance.
3. Publication of Beneficiaries: EEDC is required to publish the list of customers receiving credit adjustments in two national dailies and on its website by March 31, 2024.
Additionally, NERC has imposed a deduction of N1,186,626,342, representing 10% of the total overbilled amount, from EEDC’s annual operational expenditure (OpEx) over the next tariff review period. The commission has also warned that further deductions may occur if EEDC continues to violate capping orders.
As of this report, EEDC has not yet responded to NERC’s directive.
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