The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling customers.
This penalty is a result of AEDC’s failure to comply with NERC’s previous order on capping estimated billing for electricity consumers.
The fine, which was outlined in NERC’s September 2024 Supplementary Order dated August 30, was signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
NERC highlighted that AEDC had overcharged its customers between January and September 2023.
In response, NERC approved the deduction of ₦1.69 billion from AEDC’s annual operating expenditure, effective September 2024. This represents 10% of the total amount AEDC overbilled its customers during the specified period.
Additionally, NERC issued further directives to AEDC regarding its services to customers on Band A feeders, stating that AEDC must provide public explanations for service disruptions lasting more than two consecutive days.
AEDC is also required to monitor its service levels more closely and improve the reliability of electricity supply, particularly by sourcing 61 MW of embedded generation, with 30 MW coming from renewable energy.
Compensation was also mandated for Band A customers who received less than the expected 20 hours of average electricity supply, but more than 18 hours.
This is part of efforts to ensure accountability and improve service quality in the electricity sector.