NERC Levies ₦1.69 Billion Fine On AEDC For Overcharging Customers

NERC Levies ₦1.69 Billion Fine On AEDC For Overcharging Customers

The Nigerian Electricity Regulatory Commission (NERC) has imposed a ₦1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. This penalty was issued due to AEDC’s failure to comply with NERC’s previous directive regarding the capping of estimated billing for electricity consumers.

The fine is outlined in NERC’s September 2024 Supplementary Order, dated August 30, and signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.

According to NERC, AEDC overcharged customers between January and September 2023. The commission has therefore approved the deduction of ₦1.69 billion from AEDC’s annual operating expenditure (OpEx) as a penalty for this non-compliance.

The order stated, “The approved deduction of ₦1.69 billion from AEDC’s total annual OpEx is effective from September 2024. This penalty represents 10 percent of the overbilled amount for the period from January to September 2023.”

In addition, the order issued specific directives regarding AEDC’s service to Band A customers. It mandates that if AEDC fails to maintain the committed level of service on a Band A feeder for two consecutive days, the company must publish an explanation on its website by 10 a.m. the following day.

Furthermore, AEDC is required to continuously monitor its service levels, particularly regarding the electricity supply to Band A feeders. NERC also mandated AEDC to procure a minimum of 61 MW of embedded generation, with at least 30 MW sourced from renewable energy, to improve the reliability of electricity supply within its franchise area.

Additionally, AEDC must compensate affected customers on Band A feeders, as listed in Appendix 3, for failing to deliver an average supply of 20 hours but achieving more than 18 hours of electricity supply.

These measures are aimed at ensuring better compliance and improved service delivery to electricity consumers.