The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty fine of ₦1.69 billion on Abuja Electricity Distribution Company (AEDC) for overbilling its customers.
According to NERC’s September 2024 Supplementary Order, AEDC failed to comply with the commission’s previous order on capping estimated billing for electricity consumers, resulting in overbilling from January to September 2023.
The fine is equivalent to 10% of the overbilled amount.
“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,” NERC’s order stated.
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NERC also issued directives to AEDC regarding Band A customers, mandating the company to publish explanations for failure to deliver committed levels of service and ensure continuous monitoring of service levels. Alao, AEDC is required to procure a minimum of 61MW of embedded generation, with at least 30MW sourced from renewable energy, to improve the reliability of electricity supply within its franchise area.
“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,” NERC stated.
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