Eric Patrick
The Nigerian Electricity Regulatory Commission (NERC) has sanctioned the Abuja Electricity Distribution Company (AEDC) with a deduction of ₦1.69 billion from its annual Operating Expenditure (OPEX) over non-compliance with regulatory billing guidelines.
According to NERC, the deduction reflects 10% of the total amount AEDC overbilled its customers between May and September 2023.
The overbilling violated the Commission’s Order on the Capping of Estimated Bills, which mandates DisCos to align billing for unmetered customers with reasonable estimates based on actual service delivery.
“The Commission remains committed to protecting consumers from unfair billing practices,” NERC said in a statement.
NERC stated that the AEDC must adhere strictly to the provisions of its Service-Based Tariff (SBT) framework and will be held accountable for delivering services in line with the commitments made under the SBT regime.
The SBT system is designed to link electricity tariffs to the quality and quantity of power supplied, with customers grouped into clusters based on their average daily hours of electricity supply.
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In a related development, NERC introduced a new initiative through its May 2025 Order — the establishment of a Transmission Infrastructure Fund.
This fund is aimed at closing critical gaps in Nigeria’s electricity transmission network.
The fund will be centrally administered and targeted at supporting priority projects and innovative ventures that enhance transmission capacity.
It is also expected to facilitate vendor financing and Public-Private Partnership (PPP) schemes to accelerate development in the sector.
NERC says this move is part of broader reforms to stabilise and modernise the country’s electricity supply industry, ensuring that investments in infrastructure keep pace with the growing energy demands of the Nigerian population.