The Nigerian Electricity Regulatory Commission has recently fined the Abuja Electricity Distribution Company N1.69bn for overbilling its customers. This penalty was issued as part of the commission’s September 2024 Supplementary Order. The fine, equivalent to 10 percent of the overcharged amount, was imposed due to the company’s non-compliance with previous orders regarding capping estimated billing.
After an investigation into AEDC’s billing practices from January to September 2023, NERC discovered overcharging, leading to the imposition of the fine. The regulatory document outlined the reasons for the penalty and adjustments to AEDC’s revenue requirements and tariffs.
In response to consumer complaints and investigations revealing non-adherence to regulatory guidelines on estimated billing, the fine was levied. NERC directed AEDC to enhance service delivery, monitor compliance with service-based tariffs, and ensure continuous monitoring of service levels, especially regarding electricity supply to Band A feeders.
Additionally, AEDC was mandated to procure a minimum of 61MW of embedded generation, with at least 30MW from renewable sources, to improve electricity supply reliability. The procurement must be completed by April 2025 to meet service delivery commitments under the Service-Based Tariff framework.
NERC approved new tariffs effective from September 1, 2024, and established provisions for compensating customers affected by service failures, particularly on Band A feeders. The Supplementary Order, in effect until a new tariff review, demonstrates NERC’s dedication to enforcing regulatory compliance by electricity distribution companies and safeguarding consumers from unfair billing practices.