The Nigerian Electricity Regulatory Commission (NERC) has fined Abuja Electricity Distribution Company (AEDC) N1.69 billion for overcharging its customers in violation of regulatory guidelines, News About Nigeria reports.
This development was revealed in a supplementary order issued by NERC in September 2024.
The order, titled NERC/2024/114, was made public on NERC’s website and signed by the commission’s Vice Chairman, Musiliu Oseni, and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye.
The penalty was imposed after an investigation found that AEDC had failed to comply with regulations capping estimated billing, leading to inflated charges between January and September 2023.
NERC’s decision came in response to multiple complaints from electricity users, prompting the commission to investigate AEDC’s billing system.
As a result, the company was fined an amount representing 10 percent of the overcharged sum.
The fine will be deducted from AEDC’s annual operating expenses starting in September 2024.
NERC explained, “The deduction of N1.69 billion from AEDC’s annual operating expenditure has been approved to penalise the company for its non-compliance with the regulations on estimated billing.”
In addition to the fine, NERC issued several directives to improve AEDC’s service quality.
The company has been instructed to closely monitor electricity supply, particularly in high-priority areas, and provide explanations for any service interruptions exceeding two days.
AEDC is also required to procure 61 MW of additional power generation, including 30 MW from renewable energy sources, by April 2025 to enhance supply reliability.
To further hold the company accountable, NERC introduced a compensation scheme for customers affected by service disruptions.
Consumers in specific areas will be eligible for compensation if AEDC fails to deliver an agreed-upon level of electricity supply.
The new tariff structure, which took effect on September 1, 2024, includes provisions for refunding customers who experience significant lapses in service.
NERC stated that the fine and new measures are intended to ensure that electricity providers operate fairly and responsibly, ensuring consumers are not subjected to exploitative practices.
This supplementary order will remain in effect until further regulatory reviews are conducted by the commission.
