The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69bn on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. This penalty, outlined in Order NERC/2024/114, is part of the commission’s September 2024 Supplementary Order and follows AEDC’s non-compliance with a previous directive on capping estimated billing for consumers.
The fine, which represents 10 per cent of the overbilled amount, covers the period between January and September 2023. NERC’s Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, signed the order, which was published on the commission’s website on Thursday.
Following an investigation prompted by consumer complaints, NERC identified that AEDC had charged customers beyond the capped rates, resulting in the hefty penalty. According to the commission, the N1.69bn fine will be deducted from AEDC’s annual operating expenditure starting from September 2024.
“The commission has approved the deduction of N1.69bn from the total annual OpEx of AEDC, being 10 per cent of the overbilled amount by AEDC for the period covering January-September 2023,” NERC’s order stated.
Service Improvement Directives
In addition to the fine, NERC issued directives to enhance service delivery within AEDC’s franchise area. AEDC is required to continuously monitor its service levels, particularly for Band A feeders, which are expected to receive up to 20 hours of electricity supply per day. The order mandates AEDC to publish explanations on its website if it fails to meet this service level for two consecutive days.
Further, AEDC must procure a minimum of 61MW of embedded generation, with at least 30MW sourced from renewable energy, by April 2025 to improve supply reliability.
Tariff Adjustments and Customer Compensation
As part of the supplementary order, NERC also approved new tariffs for AEDC, effective from September 1, 2024. Provisions were made for compensating customers on Band A feeders who receive less than 20 hours but more than 18 hours of daily electricity supply.
NERC’s supplementary order sheds light on the commission’s dedication to ensuring electricity distribution companies adhere to regulatory guidelines while protecting consumers from unfair billing practices.
