The Nigerian Electricity Regulatory Commission (NERC) has imposed a significant fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers.
The fine stems from AEDC's non-compliance with previous NERC directives regarding the capping of estimated billing for electricity consumers.
Following an investigation into AEDC's billing practices from January to September 2023, NERC determined that the company had overcharged its customers, leading to this substantial penalty, which represents 10% of the overbilled amount.
The regulatory document, dated August 30 and signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance Dafe Akpeneye, outlines the rationale behind the fine and adjustments to AEDC's revenue requirements and tariffs.
NERC has mandated that N1.69 billion be deducted from AEDC's annual operating expenses starting September 2024, as a penalty for failing to adhere to the established guidelines on estimated billing.
The commission's order highlights that the fine was imposed in response to numerous consumer complaints and subsequent investigations that revealed AEDC's disregard for regulatory standards.
In addition to the financial penalty, NERC has issued directives aimed at enhancing service delivery and monitoring adherence to service-based tariffs. AEDC is now required to continuously monitor its service levels, particularly for electricity supply to Band A feeders.
Should AEDC fail to meet the committed service levels for two consecutive days, it must provide an explanation on its website by 10 AM the following day.
The Supplementary Order also mandates AEDC to procure at least 61 megawatts (MW) of embedded generation capacity, with a minimum of 30 MW sourced from renewable energy, to improve the reliability of electricity supply in its service area. This procurement must be completed by April 2025.
