The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty ₦1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. This action comes as part of NERC’s ongoing efforts to hold distribution companies accountable and safeguard consumers from unfair practices.
The fine, representing 10% of the overbilled amount from January to September 2023, follows AEDC’s failure to adhere to NERC’s directive on capping estimated billing, as specified in ‘Order NERC/2024/114’, which is part of the commission’s September 2024 Supplementary Order.
NERC’s Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, formalized the order, which was published on NERC’s website on September 12. The penalty will be deducted from AEDC’s annual operating expenditure (OpEx) starting September 2024.
Previously, in April, NERC had fined AEDC ₦200 million for a similar offense. This new fine underscores NERC’s commitment to enforcing regulations and ensuring compliance.
To prevent future violations, NERC has implemented additional service-based measures. AEDC is required to improve electricity supply, particularly to Band A feeders. If AEDC fails to provide adequate power for two consecutive days, it must publicly explain the reason by 10 am on the third day. Additionally, AEDC must acquire 61MW of embedded generation capacity, with at least 30MW coming from renewable energy by April 2025, to enhance service reliability.
The Supplementary Order will remain in force until the next tariff review and mandates compensation for customers experiencing service failures on Band A feeders.