The Nigerian Electricity Regulatory Commission (NERC) has imposed a substantial fine of N1.69 billion on the Abuja Electricity Distribution Company (AEDC) for its failure to adhere to regulatory guidelines, specifically regarding estimated billing practices. This penalty is a direct result of AEDC’s overbilling of customers from January to September 2023.
According to NERC, the fine was issued due to AEDC’s non-compliance with a directive that required capping estimated bills. This directive, initially communicated to the company to protect consumers from inflated billing, was evidently disregarded, leading to the financial sanction.
The decision is formalized in ‘Order NERC/2024/114,’ a component of NERC’s September 2024 Supplementary Order. This order was officially issued on August 30, 2024, and signed by Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye. The order came after a thorough investigation into AEDC’s billing practices, which uncovered that customers had been overcharged during the specified period. The fine, which amounts to 10% of the total overbilled sum, underscores NERC’s commitment to enforcing compliance and protecting consumer rights.
The order details that “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 N1.69 billion from the total annual OpEx of AEDC effective September 2024.” This fine is calculated as 10% of the amount overbilled by AEDC between January and September 2023.
