The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty N1.69 billion fine on Abuja Electricity Distribution Company (AEDC) for overcharging its customers.
This penalty, outlined in the regulatory document “Order NERC/2024/114,” was revealed as part of NERC’s September 2024 Supplementary Order and officially published on the commission’s website.
The order, dated August 30 and signed by NERC Vice Chairman, Musiliu Oseni, and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye, cited AEDC’s failure to comply with earlier directives on capping estimated billing.
The investigation found that AEDC had overbilled customers between January and September 2023, leading to the fine, which equates to 10 per cent of the overcharged amount.
In the regulatory document titled “September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC,”2 NERC detailed the reasons behind the fine, as well as the adjustments to AEDC’s revenue requirements and tariffs.
“The commission has approved the deduction of N1.69 billion from AEDC’s total annual operating expenditure, effective from September 2024, as a penalty for non-compliance with the capping order,” NERC stated.
The fine was a response to numerous customer complaints and subsequent investigations that revealed AEDC had been inflating bills beyond the regulatory cap. AEDC has also been instructed to improve its service delivery, particularly on Band A feeders, and to ensure real-time monitoring of electricity supply.
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One directive requires AEDC to publicly explain any service failure lasting more than two consecutive days on Band A feeders. “If AEDC fails to maintain the service level for more than two days on any Band A feeder, the company must, by 10 AM the following day, publish an explanation on its website detailing the reasons for the disruption,” NERC mandated.
To improve supply reliability, the Supplementary Order further instructed AEDC to procure at least 61 megawatts (MW) of embedded generation capacity by April 2025, with a minimum of 30MW sourced from renewable energy. This measure, NERC said, is critical to meeting AEDC’s service delivery obligations under the Service-Based Tariff framework.
Regarding tariff adjustments, the commission approved new rates effective from September 1, 2024. NERC also introduced compensation provisions for customers on Band A feeders who experience service shortfalls.
“AEDC is required to compensate affected customers listed in Appendix 3 for failing to deliver the required 20 hours of average electricity supply, though they received more than 18 hours,” the order stated.
The Supplementary Order will remain in force until the next tariff review, reflecting NERC’s ongoing efforts to hold electricity distribution companies accountable for regulatory breaches while safeguarding consumer interests.
By enforcing these penalties and directives, NERC aims to ensure compliance and fairness in the electricity market, while pushing for better service delivery and transparency in Nigeria’s power sector.
