The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Company (AEDC) N1.69 billion for overbilling its customers. This penalty, outlined in Order NERC/2024/114 and published as part of the commission’s September 2024 Supplementary Order, was imposed following AEDC’s failure to comply with previous regulations on capping estimated bills.
The fine, equivalent to 10 percent of the overbilled amount, covers a period from January to September 2023, during which AEDC overcharged its customers. NERC’s investigation revealed that AEDC’s billing practices violated guidelines, leading to complaints from consumers.
The regulatory document, signed by Vice Chairman Musiliu Oseni and Commissioner Dafe Akpeneye, stated that the N1.69 billion fine would be deducted from AEDC’s total annual operating expenditure starting in September 2024.
In addition to the financial penalty, NERC issued several directives aimed at improving service delivery. AEDC is required to continuously monitor electricity supply to its Band A feeders, publishing explanations for service failures that persist for more than two consecutive days. Furthermore, AEDC must procure a minimum of 61MW of embedded generation, including at least 30MW from renewable energy sources, by April 2025 to enhance electricity reliability.
NERC also approved adjustments to AEDC’s tariffs effective from September 1, 2024. Provisions for customer compensation were included, ensuring that consumers on Band A feeders receive compensation for service failures where the electricity supply falls below 20 hours of average daily service.
This Supplementary Order emphasizes NERC’s commitment to holding electricity distribution companies accountable for non-compliance with regulatory standards and protecting consumers from unfair billing practices.
