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The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on Abuja Electricity Distribution Company (AEDC) for overbilling customers.
The penalty follows AEDC's failure to comply with NERC's order on capping estimated billing for electricity consumers, as outlined in 'Order NERC/2024/114', part of the commission's September 2024 Supplementary Order.
NERC's Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, signed the order, released on NERC's website on Thursday, September 12.
According to NERC, the fine represents 10 per cent of the overbilled amount between January and September 2023.
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In its investigation, NERC discovered that AEDC had overcharged customers for several months, prompting the heavy penalty.
The fine will be deducted from AEDC's annual operating expenditure (OpEx) starting September 2024.
"The commission has approved the deduction of ₦1.69bn from AEDC's annual OpEx as a penalty for non-compliance with the order on capping estimated bills," the order stated.
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To avoid future breaches, NERC also introduced service-based measures, directing AEDC to enhance electricity supply, particularly to Band A feeders.
If AEDC fails to deliver adequate power for two consecutive days, it must publicly disclose the reason by 10 am on the third day.
Moreover, AEDC has been tasked with procuring 61MW of embedded generation capacity, with at least 30MW sourced from renewable energy by April 2025. This step is intended to improve service reliability within AEDC's franchise area.
The Supplementary Order remains in effect until the next tariff review and mandates customer compensation for service failures on Band A feeders.