Good news for electricity consumers as regulator fines distribution company for overbilling customers

• The Nigerian Electricity Regulatory Commission fined Abuja Electricity Distribution Company N1.69 billion for overcharging customers
• AEDC's non-adherence to the commission's prior directive regarding the limitation of projected billing for power users is the reason for the fine
• The fine is due to AEDC's disregard for the commission's previous order restricting projected billing for power users

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Abuja Electricity Distribution Company (AEDC) has been fined ₦1.69 billion by the Nigerian Electricity Regulatory Commission for overcharging customers.

NERC reports that it has authorized the subtraction of N1.69 billion, or 10%, from the amount that AEDC overcharged for the period of January through September 2023. Photo Credit: Sean Anthony Eddy
Source: Getty Images

As per NERC's statement, the fine is due to AEDC's disregard for the commission's previous order restricting projected billing for power users.

The fine was specified in the official "Order NERC/2024/114" that the commission issued.

The fine is included in the September 2024 Supplementary Order of the commission, which was obtained from NERC's website. It was dated August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye.

Following NERC's investigation of AEDC's billing procedures, the organisation was found to have overcharged customers between January and September 2023. As a result, a fine equal to 10% of the overcharged sum was imposed.

The document outlined the reasons behind the fine and adjustments to AEDC’s revenue requirements and tariffs.

According to NERC, it has approved the deduction of N1.69 billion, or 10% of the overcharged amount by AEDC for the January–September 2023 period, from the company's total annual OpEx, starting in September 2024.

NERC’s order emphasised,

NERC not only imposed the fine but also issued guidelines with the goal of enhancing service delivery and overseeing adherence to service-based prices.

NERC issues warning to Nigerians using prepaid meters

Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has again reminded Nigerians to update their meters before the deadline of November 2024.

The Commission released the message through its official X account on Tuesday, August 8, 2024, urging electricity consumers to take action before the deadline.

The commission warned that after the deadline, consumers who fail to upgrade may not be able to recharge their electricity.

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Source: Legit.ng