The Nigerian Electricity Regulatory Commission (NERC) has approved the deduction of N1.69 billion from the total annual operating expenditure of Abuja Electricity Distribution Company (AEDC).
In its May 2025 supplementary order, the NERC said the deduction was due to AEDC’s non-adherence to the “order on non-compliance with capping of estimated bills” and a review of data further provided by the DisCo.
“The Commission has approved the deduction of N1.69Bn from the total annual OpEx of AEDC effective September 2024, being 10% of the overbilled amount by AEDC for the period covering May—September 2023,” the report reads.
The NERC said the order has made provision for the creation of a transmission infrastructure fund (TIF), aimed at financing essential transmission projects and innovative initiatives to enhance the delivery of transmission services within the electricity sector.
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“The fund shall be centrally managed and can also be used to securitise vendor financing and other Public Private Partnership (“PPP”) arrangements to fund,” the report reads.
According to the NERC, the DisCo is obligated by the order to also procure a minimum of 61 megawatts (MW) capacity of embedded generation, which is 10 percent of its 2024 load allocation.
This, the commission said, will improve the reliability of supply and sustain delivery of a minimum service level under the service-based tariff (SBT).
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“A minimum of 30MW (i.e., 50%) of the embedded generation capacity must be sourced from renewable energy sources,” NERC said.
The commission said the required capacity may be procured in bulk or distributed across AEDC’s franchise area.
