Ikeja Electricity Districity Distribution Company Fined N131.4 million by regulator for breaches

A fine have been placed on Ikeja Electricity Distribution Company IKEDC and this is to the tune of N131.4 million. This was announced by the Nigerian Electricity Regulatory Commission for defying the regulator's orders on metering.According to NERC, the firm has been sanctioned for its “flagrant breaches” of the Credited Advance Payment on Metering Initiative Order.It said the firm was given a seven day deadline to explain why enforcement actions should not be taken against it but failed to respond.It also said the company violated its rules on CAPMI which is a metering initiative by the regulator to enable electricity companies close the wide gap in metering following the discovery that over 50 per cent of customers bills are estimated.
The scheme allows willing customers to pay for meters and be supplied within 45 days. The customer is then refunded through rebates or reduction in fixed charge components over time.

“It is hereby ordered that IKEDC shall with immediate effect from the date of this order comply with the CAPMI order and forward evidence of full compliance to the commission within two weeks. IKEDC shall pay an administrative fine of N250 per minute of every hour of the day for a period of one year from September 29, 2014 to September 28, 2015 for non- compliance with the CAPMI order, with a moratorium from May 14, 2013, being the date of the CAPMI order, to September 28, 2014.”

The electricity distribution company was further ordered to “pay an administrative fine of N500 per minute for every hour of the day that it continues to default from October 12, 2015 until it complies.”