The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on Abuja Electricity Distribution Company (AEDC) for overbilling its customers, citing non-compliance with regulations on capping estimated billing.
The penalty was outlined in ‘Order NERC/2024/114,’ which is part of the commission’s September 2024 Supplementary Order, signed by NERC’s Vice Chairman Musiliu Oseni and Commissioner Dafe Akpeneye.
NERC’s investigation found that AEDC had overcharged customers from January to September 2023, leading to the fine, which represents 10% of the overbilled amount. The commission has approved the deduction of ₦1.69 billion from AEDC’s operating expenditure, effective from September 2024, as a consequence of the violation.
Additionally, NERC has mandated several measures to improve service delivery and ensure compliance, including the procurement of 61MW of embedded generation, with 30MW sourced from renewable energy, by April 2025.
The Supplementary Order also requires AEDC to monitor service levels for Band A feeders and provide compensation to customers for service failures. The new tariffs approved by NERC will take effect on September 1, 2024.
