Abuja DisCo Hit with N1.69bn Fine for Overbilling; Ordered to Compensate Affected Customers
PENTALK360 
The Nigerian Electricity Regulatory Commission (NERC) has imposed a N1.69 billion fine on the Abuja Electricity Distribution Company (AEDC) for overbilling its customers. The penalty, issued on August 30, is outlined in NERC’s September 2024 Supplementary Order and signed by NERC Vice Chairman Musiliu Oseni and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
According to NERC, the fine is part of its efforts to address AEDC’s failure to comply with existing regulations regarding the capping of estimated billing for electricity consumers. The N1.69 billion represents 10 percent of the total amount overbilled from January to September 2023.
An investigation into AEDC’s billing practices revealed that the company had overcharged customers during the nine-month period. As a result, NERC has ordered a deduction of N1.69 billion from AEDC’s annual operating expenses, effective from September 2024.
“This action follows consumer complaints and investigations that revealed AEDC’s non-compliance with regulatory guidelines on estimated billing,” NERC stated in the supplementary order, which is part of the 2024 Multi-Year Tariff Order.
In addition to the fine, NERC has issued directives to improve service delivery and enforce compliance with service-based tariffs. AEDC is now required to continuously monitor service levels, especially for customers connected to Band A feeders, which are expected to receive higher service quality.
The regulatory body also instructed AEDC to publish an explanation on its website if it fails to deliver the committed level of service on a Band A feeder for two consecutive days. The explanation must be made available by 10 a.m. the following day.
Moreover, AEDC has been mandated to procure at least 61 megawatts (MW) of embedded generation capacity, with a minimum of 30MW sourced from renewable energy, by April 2025. This move is expected to enhance the reliability of electricity supply within its operational area.
The supplementary order also introduces new tariffs, effective September 1, 2024, along with provisions for compensating customers on Band A feeders for service failures. Specifically, customers will be compensated if they receive less than 20 hours of electricity supply per day but more than 18 hours.
The order underscores NERC’s commitment to regulatory enforcement and consumer protection, ensuring that electricity providers adhere to fair billing practices. The provisions of the supplementary order will remain in effect until the next tariff review is issued.
