The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. According to NERC, the fine results from AEDC’s non-compliance with the commission’s previous order capping estimated billing for electricity consumers.
The penalty, documented in ‘Order NERC/2024/114,’ was issued as part of NERC’s September 2024 Supplementary Order. Dated August 30 and signed by NERC Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, the order was made public through the commission’s website.
Following an investigation into AEDC’s billing practices, NERC found that the company had overcharged customers between January and September 2023. The fine, amounting to 10 percent of the overbilled amount, was imposed as a corrective measure. NERC’s order specified, “The commission has approved the deduction of ₦1.69 billion from AEDC’s total annual operating expenditure effective September 2024, representing 10 percent of the overbilled amount.”
The Supplementary Order also includes directives to enhance AEDC’s service delivery and ensure compliance with service-based tariff guidelines. Among the requirements, AEDC must continuously monitor electricity supply levels, particularly on its Band A feeders, and publish reasons for any supply failures exceeding two consecutive days on its website by 10 a.m. the following day.
Additionally, NERC mandated AEDC to procure at least 61MW of embedded generation, with 30MW sourced from renewable energy, to improve electricity supply reliability within its franchise area. This procurement is to be completed by April 2025.
NERC also approved new tariffs for AEDC, effective from September 1, 2024, with provisions for compensating customers on Band A feeders who experience less than the required 20 hours of average daily supply.
The commission reiterated its commitment to protecting consumers from unfair billing practices while holding electricity distribution companies accountable for regulatory compliance.
