NERC Fines AEDC ₦1.69 Billion For Overbilling Customers

The Nigerian Electricity Regulatory Commission (NERC) has fined Abuja Electricity Distribution Company (AEDC), ₦1.69bn for overbilling customers.

NERC said the fine follows AEDC’s non-compliance with the commission’s previous order on capping estimated billing for electricity consumers.

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

According to NERC, AEDC overcharged customers from January to September 2023.

“The commission has approved the deduction of ₦1.69bn from AEDC’s annual operating expenditure as a penalty for non-compliance with the order on capping estimated bills.

“The approved deduction of ₦1.69bn from the total annual OpEx of AEDC effective September 2024, being 10 percent of the overbilled amount by AEDC for the period covering January-September 2023,” NERC’s order said.

The order further issued directives to ADEC on Band A customers.

“Where AEDC fails to deliver on the committed level of service on a Band A feeder for consecutive two days, AEDC shall on the next day by 10 am publish on its website an explanation of the reasons for the failure

“AEDC is required to ensure the continuous monitoring of its service levels, particularly regarding electricity supply to Band A feeders.

“The Supplementary Order mandated AEDC to procure a minimum of 61MW of embedded generation, with at least 30MW sourced from renewable energy, to improve the reliability of electricity supply within its franchise area.

“AEDC shall make appropriate compensation to the affected customers in Band A feeders listed in Appendix 3 for failure to deliver up to 20 hours of average supply but more than 18 hours of average supply,” Channels TV quoted NERC.