The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers.
This penalty is part of NERC’s ongoing efforts to enforce regulations on capping estimated billing for electricity consumers.
The fine, detailed in ‘Order NERC/2024/114’ within NERC’s September 2024 Supplementary Order, was issued on August 30 and signed by NERC’s Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
Following an investigation, NERC found that AEDC (Abuja DisCo) overcharged its customers between January and September 2023, prompting a fine equivalent to 10 percent of the overbilled amount.
NERC’s order stipulates that ₦1.69 billion will be deducted from AEDC’s annual operating expenses starting in September 2024, corresponding to the overbilled sum during the investigation period. The order also includes adjustments to AEDC’s revenue requirements and tariff structures to prevent future overbilling.
Beyond the financial penalty, NERC has directed AEDC to improve service delivery and closely monitor compliance with service-based tariffs. AEDC is specifically tasked with overseeing the performance of its Band A feeders to ensure consistent electricity supply in line with regulatory standards.
The Supplementary Order will remain active until the next tariff review, underscoring NERC’s commitment to enforcing accountability among electricity distribution companies and protecting consumers from unfair billing practices.
“Where AEDC fails to deliver on the committed level of service on a Band A feeder for consecutive two days, AEDC shall on the next day by 10am publish on its website an explanation of the reasons for the failure,” the order specified.
NERC has instructed AEDC to secure at least 61MW of embedded generation capacity, with no less than 30MW sourced from renewable energy. This measure aims to improve the reliability of electricity supply within AEDC’s coverage area, with a deadline for procurement set for April 2025.
NERC emphasized that this requirement is essential for AEDC to meet its service delivery commitments under the Service-Based Tariff framework. In line with this, the commission has approved new tariffs that became effective on September 1, 2024.
Moreover, NERC has established guidelines for compensating customers who experience service failures, particularly those connected to Band A feeders, to ensure that consumers receive appropriate compensation for any disruptions in service quality.
“AEDC shall make appropriate compensation to the affected customers in Band A feeders listed in Appendix 3 for failure to deliver up to 20 hours of average supply but more than 18 hours of average supply,” the order stated.
In April, NERC had imposed a ₦200 million fine on Abuja Electricity Distribution Company for failing to adhere to the Supplementary Order of the April 2024 Multi-Year Tariff Order.
According to NERC, the penalty was issued because the DisCo did not comply with the designated customer bands specified in the tariff billing guidelines.
