The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. The penalty was issued as part of NERC’s September 2024 Supplementary Order, detailed in Order NERC/2024/114, and published on NERC’s website on Thursday.
According to NERC, the fine stems from AEDC’s non-compliance with previous guidelines on capping estimated billing, following investigations that revealed customers were overcharged between January and September 2023. As a result, NERC ordered a deduction of N1.69 billion from AEDC’s annual operating expenditure, equivalent to 10% of the overbilled amount.
The commission also directed AEDC to improve service delivery and ensure better compliance with service-based tariffs. AEDC is required to procure 61MW of embedded generation, including at least 30MW from renewable sources, by April 2025 to enhance electricity reliability in its franchise area.
NERC emphasized that customers on Band A feeders must be compensated if the company fails to provide at least 20 hours of average electricity supply daily.
