The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling customers between January and September 2023.
The penalty was issued in response to AEDC’s non-compliance with NERC’s order on capping estimated billing for electricity consumers.
The fine was detailed in ‘Order NERC/2024/114,’ part of NERC’s September 2024 Supplementary Order dated August 30.
The document, signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, was made available on the commission’s website on Thursday.
According to NERC’s investigation, AEDC overcharged its customers during the specified period, leading to the fine, which is equivalent to 10 percent of the overbilled amount. NERC stated, “The commission has approved the deduction of ₦1.69bn from AEDC’s annual operating expenditure as a penalty for non-compliance with the order on capping estimated bills.”
In addition to the fine, NERC issued several directives aimed at improving AEDC’s service delivery. AEDC is required to closely monitor its service levels, especially in relation to electricity supply on Band A feeders. If AEDC fails to deliver the committed level of service on a Band A feeder for two consecutive days, it must publish an explanation on its website by 10 a.m. the following day.
The Supplementary Order also mandates AEDC to procure at least 61 megawatts (MW) of embedded generation capacity, with a minimum of 30 MW sourced from renewable energy. This procurement, aimed at improving electricity reliability, must be completed by April 2025.
NERC further approved new tariffs for AEDC, effective from September 1, 2024, while also introducing provisions for compensating customers.
According to the order, “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 Supplementary Order will remain in effect until a new tariff review is issued, highlighting NERC’s efforts to ensure compliance with regulatory guidelines and protect consumers from unfair billing practices.