The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69 billion on Abuja Electricity Distribution Company (AEDC) for overbilling its customers. The penalty, outlined in Order NERC/2024/114, was issued as part of NERC’s September 2024 Supplementary Order.
According to the regulatory document, published on NERC’s website, the fine was levied after an investigation revealed that AEDC had failed to comply with the commission’s rules on capping estimated bills for electricity consumers. The investigation found that the company overcharged its customers between January and September 2023. As a result, NERC imposed a fine equivalent to 10% of the overbilled amount.
The order, signed by NERC Vice Chairman Musiliu Oseni and Commissioner Dafe Akpeneye, stated, “The commission has approved the deduction of N1.69bn from AEDC’s annual operating expenditure as a penalty for non-compliance with the order on capping estimated bills.”
The regulatory body highlighted that the penalty would be deducted from AEDC’s total annual operational expenses starting in September 2024. In addition to the fine, NERC directed AEDC to improve its service delivery and closely monitor its compliance with service-based tariffs, particularly for customers on Band A feeders.
NERC also instructed AEDC to explain any service interruptions lasting more than two consecutive days by publishing reasons on its website. Furthermore, AEDC is required to procure a minimum of 61MW of embedded generation, with at least 30MW sourced from renewable energy, to enhance electricity supply reliability in its franchise area. This procurement must be completed by April 2025.
To compensate for service failures, the commission mandated that AEDC provide compensation to customers in Band A feeders who receive less than 20 hours but more than 18 hours of electricity supply.
The September 2024 Supplementary Order, which will remain in place until the next tariff review, reinforces NERC’s commitment to protecting consumers and ensuring compliance with regulatory standards in the electricity distribution sector.
