This decision follows a period of service disruption necessitated by significant unpaid electricity obligations, which had impacted water distribution across the Federal Capital Territory.

Reason for Disconnection

AEDC clarifies that the disconnection was a measure of last resort, following the accumulation of over one year of outstanding electricity debt by the FCT Water Board.

Despite numerous formal notices, high-level engagements, and multiple opportunities provided to regularize the account in accordance with regulatory provisions, the debt remained unsettled.

Restoration of Essential Services

Acknowledging the critical role water plays in public health and the widespread concerns voiced by FCT residents, Engr. Chijioke Okwuokenye, the acting managing director/chief executive officer of AEDC, has directed the immediate restoration of power.

“Our decision to reconnect underscores AEDC’s commitment to the welfare of the communities we serve,” said Engr. Okwuokenye. “We believe that access to essential services must be safeguarded, especially where public health and safety are at stake.”

While power has been restored to ensure residents have access to water, the reconnection is conditional.

AEDC said it has established a clear roadmap for the FCT Water Board to prevent future disruptions:

• Two-Week Timeline: The FCT Water Board must present a credible payment plan within 14 days.
• Implementation: Settlement of outstanding obligations must commence within this period.
• Regulatory Compliance: Failure to meet these conditions will, regrettably, leave AEDC with no choice but to re-apply service disconnection as permitted by industry guidelines.

“AEDC remains dedicated to transparent engagement and the delivery of sustainable electricity services. The company urges all maximum demand customers and institutions to prioritize the timely settlement of energy bills to ensure the continued stability of the power sector in the FCT”, the acting CEO said.

AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

This decision, according to a statement on NERC’s X handle, follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.

The statement reads:

“AEDC is therefore mandated to:

“Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

“Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.

“Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

“File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.

Signed

Management

The President’s directive follows the reconciliation of accounts between the State House Management and AEDC.

On Monday, the AEDC said it will disconnect electricity in the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies over N47.20bn outstanding debts as of December 2023.

The publication showed that the State House owed N923m in bills, a figure the Presidency refuted Tuesday.

In a statement signed by President Bola Tinubu’s Special Adviser on Information and Strategy, Mr. Bayo Onanuga, the Presidency declared, “Contrary to the AEDC’s initial claim of N923m debt in paid advertorial in newspapers, the State House outstanding bill is N342.35m, according to a letter by the management of AEDC to the State House Permanent Secretary dated February 14, 2024.”

The statement is titled ‘President Tinubu directs payment of State House electricity bill.’

It read in part, “Having reconciled the position to the satisfaction of both parties, the Chief of Staff to the President, Femi Gbajabiamila, has given assurance that the debt will be paid to AEDC before the end of this week.

“Following the example of the Presidency, the Chief of Staff also urged other MDAs to reconcile their accounts with AEDC and pay their electricity bills.”

Contrary to the AEDC’s initial claim of N923 Million debt in paid advertorial in newspapers, the State House outstanding bill is N342, 352, 217.46,

Some of the MDAs the AEDC named are Chief of Defence Staff – Barracks and Military Formations owing N12bn, FCT Ministry, Ministry of Finance, Ministry of State Petroleum, Ministry of Health, Ministry of Information, Ministry of Education, Ministry of Agriculture.

Others are the Federal Inland Revenue Service, Ministry of Education, CBN governor, Ministry of Foreign Affairs, Ministry of Budget and Planning, Ministry of Culture and Tourism, Ministry of Interior, Head ECOWAS, and Ministry of Transport, among others.

While issuing a notice of disconnection to the affected MDAs, the company warned that it has “given a 10 days’ notice to 86 Government to pay up the N47.1bn electricity debt they owe or risk disconnection.

“The Abuja Electricity Distribution PLC is constrained to do this publication with the details of Government, Ministries, Departments and Agencies with long outstanding unpaid bills for services rendered to them through the provision of electricity supply in that our previous attempts to make them honour their obligations have not achieved the desired results,” it added.

This comes on the heels of the organization’s announcement that the national grid has been completely restored following a partial disruption around 11:21 a.m. on Sunday.

In a statement issued in Abuja on Sunday, Mrs. Ndidi Mbah, TCN’s general manager of Public Affairs, stated that the company promptly initiated the restoration process for the affected portion of the grid.

Mbah stressed that before the incident, the total generation on the grid was 3,901.25 Mega Watts (MW) at 8 a.m., a little over three hours before the partial collapse.

She emphasized that it is crucial to note the persistence of low power generation since January, worsening daily due to the on-going gas constraint.

According to the National Control Centre (NCC), data from the Internet of Things (IoT) indicated that just before the partial disturbance, which occurred at Sapele, Steam, and Egbin Substations, there was a loss of 29.32MW and 343.84MW at 11:20:14 hrs and 11:20:17 hrs respectively, totalling 373.16MW.

The statement read, “The Transmission Company of Nigeria, hereby states that the grid experienced a partial disturbance at about 11:21hrs with Ibom power islanded feeding Eket, Ekim, Itu and Uyo transmission substations, during the period of partial disturbance.

“This, combined with the current low power generation due to gas constraints, caused the imbalance leading to the partial system disturbance.

“Gas constraints continue to impact grid flexibility and stability. Ensuring sufficient gas supply to power generating stations is crucial for grid stability.”

Mbah, emphasized that having adequate generation capacity enables improved grid management during unexpected generation losses like the one experienced.

Earlier, Techeconomy reported the collapse of the national grid yesterday around 11:21 am in a statement from the Abuja Electricity Distribution Company (AEDC).

Reports had circulated on various platforms claiming that AEDC announced an impending tariff increase without approval from the regulator, NERC.

Additionally, a viral message on WhatsApp and social media contributed to the confusion by stating that the company had announced a tariff change.

It is worth noting that energy experts have predicted that electricity tariffs in Nigeria may rise due to factors such as the managed float by the Central Bank of Nigeria (CBN) and the austerity measures implemented by the administration of President Bola Tinubu.

AEDC, however, made it clear that no approval has been granted for tariff increments and urged customers to disregard any notifications suggesting otherwise.

In their statement, they emphasized, “Please ignore the information circulating in the media about the review of electricity tariffs. We want to inform you that we have not received any approval for such increases, and we apologize for any inconvenience caused.”

Earlier, TechEconomy reported that electricity prices in Nigeria are expected to increase following the unification of the naira, which has led to its depreciation at the investor and exporter window. The CBN recently consolidated all segments of Nigeria’s foreign exchange market into one.

Dr. Damilola Oluwole, a Director of Energy Markets and Rates Consultants, explained that current electricity tariffs already account for the inflation rate.

The inflation rates used are based on historical average rates from the National Bureau of Statistics (NBS), with the current figure standing at approximately 22.4%. As a result, due to a slight increase in the Consumer Price Index (CPI), the impact of tariffs is expected to be minimal.

Dr. Oluwole also mentioned that according to figures provided by the CBN’s website, the exchange rate of USD/NGN 467.53 indicates a marginal increase compared to the current rate of USD/NGN 441.48.

Based on the assumption that the rate of USD/NGN 663 from the I&E window on Friday, June 16th, is used for December 2023 tariffs, and all other factors remain constant, an average increase of about 25-30% can be expected for some distribution companies (DisCos).