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NERC fines Abuja DisCo N1.6 billion for overbilling customers  

NERC

The Nigerian Electricity Regulatory Commission (NERC) has levied a fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for overbilling customers between January to September 2023.

According to NERC, the penalty arises from AEDC’s failure to comply with the commission’s previous directive on capping estimated billing for electricity consumers.

The fine is detailed in ‘Order NERC/2024/114,’ was part of NERC’s September 2024 Supplementary Order, issued on August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.

The order, follows an investigation into AEDC’s billing practices, which revealed that customers were overcharged between January and September 2023. The fine represents 10% of the total overbilled amount.

NERC’s order reads, “Pursuant to the Commission’s Order NERC/2024/004 on Non-compliance with the Capping of Estimated Bills and subsequent petition hearings and review of data further provided by AEDC, the Commission has approved the deduction of N1.69Bn from the total annual OpEx of AEDC effective September 2024, being the 10% of the overbilled amount by AEDC for the period covering January–September 2023.” 

Indices affecting electricity tariffs 

The Nigerian Electricity Regulatory Commission (NERC) has reviewed key indices affecting electricity tariffs for Abuja Electricity Distribution Company (AEDC) for September to December 2024.

The Supplementary Order requires AEDC to procure a minimum of 61MW of embedded generation, with at least 30MW coming from renewable energy sources, to enhance electricity reliability within its franchise area.

According to the NERC, the procurement must be completed by April 2025. NERC noted that this step is crucial for AEDC to fulfill its service obligations under the Service-Based Tariff framework.

Additionally, NERC approved new tariffs effective from September 1, 2024, and included provisions for compensating customers for service failures, particularly those on Band A feeders.

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