The Nigerian Electricity Regulatory Commission has fined the Abuja Electricity Distribution Company (AEDC) N1.69 billion for overcharging its customers. The fine, detailed in Order NERC/2024/114, was imposed as part of the commission’s September 2024 Supplementary Order.
The regulatory document, ORDER/NERC/2024/114, dated August 30 and signed by Vice Chairman Musiliu Oseni and Commissioner Legal, Licensing and Compliance Dafe Akpeneye, was published on NERC’s website on Thursday.
According to NERC, the penalty results from AEDC’s failure to comply with the commission’s previous order on limiting estimated billing for electricity consumers.
Following an investigation into AEDC’s billing practices, NERC found that the company had overbilled customers from January to September 2023. This led to the imposition of the fine, which amounts to ten per cent of the overcharged sum.
The regulatory document, titled September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC, explains the basis for the penalty and the adjustments to AEDC’s revenue requirements and tariffs.
The regulatory commission announced that it had “approved the deduction of N1.69 billion from AEDC’s total annual OpEx, effective September 2024, which equals 10 per cent of the amount overbilled by AEDC from January to September 2023.”
The fine was imposed in response to consumer complaints and subsequent investigations that revealed AEDC’s failure to comply with the regulatory directives on estimated billing practices.
“The commission has sanctioned the deduction of N1.69bn from AEDC’s annual operating expenditure as a consequence of their non-compliance with the directive on capping estimated bills.” the regulator stressed.
In addition to the fine, NERC issued instructions to enhance service provision and monitor adherence to service-based tariffs.
