The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N1.3 billion on Abuja Electricity Distribution Company (AEDC) for non-compliance with its order on capping estimated billing for electricity consumers.
The fine, contained in Order NERC/2024/114, was issued due to AEDC’s overcharging of customers from January to September 2023, amounting to 10% of the overbilled amount.
According to the commission’s September 2024 Supplementary Order, dated August 30, NERC approved the deduction of N1.69 billion from AEDC’s total annual operating expenditure (OpEx) effective September 2024, as a penalty for non-compliance.
The order emphasized that the deduction is equivalent to 10% of the overbilled amount by AEDC for the period covering January-September 2023.
In addition to the fine, NERC also issued directives aimed at improving service delivery and monitoring compliance with service-based tariffs.
To meet AEDC’s service delivery commitments, NERC ordered the procurement of additional capacity, to be completed by April 2025.
The commission also approved new tariffs effective from September 1, 2024, and made provisions for compensating customers for service failures, particularly those on Band A feeders. AEDC will compensate affected customers in Band A feeders for failure to deliver up to 20 hours of average supply but more than 18 hours of average hours
