EEDC Ordered to Refund Over N11 Billion to South East Customers Due to Over-Billing

The Enugu Electricity Distribution Company (EEDC) has been mandated to refund over N11 billion to customers in the southeast region for over-billing them between January and September 2023. This directive comes from the Nigerian Electricity Regulatory Commission (NERC), which found that the EEDC overcharged 1,011,402 customers during this period by overestimating their bills.

According to NERC’s order, EEDC will credit the accounts of all customers who were over-billed between January and September 2023 when they are billed for energy consumed in February 2024. The commission expressed concerns about EEDC’s failure to comply with previous directives on capping estimated bills, which resulted in widespread dissatisfaction among customers and contributed to payment apathy, leading to liquidity challenges in the power sector.

NERC’s review revealed that a total of N11,866,263,420.31 was overcharged to customers from January to September 2023. Despite issuing compliance deadlines to EEDC, the company continued to exceed the monthly caps for estimated billing, resulting in significant financial losses for customers.

To address the situation, NERC ordered EEDC to reconcile accounts and issue credit adjustments to affected customers by the end of February 2024. EEDC must submit billing data and relevant information to NERC by March 31, 2024, to demonstrate compliance with the commission’s directives.

In addition, EEDC is required to publish the list of customers eligible for credit adjustments in two national dailies and on its website by March 31, 2024. Furthermore, a deduction equivalent to 10% of the total over-billing amount will be applied to EEDC’s annual operating expenses over the next 12 months during the upcoming tariff review.