NERC fines AEDC N1.69bn, EKEDC N1.41bn for ‘overbilling’ customers

The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Company (AEDC) and other electricity distribution companies for overbilling customers.

NERC published the fine in its September 2024 supplementary order on Friday.

According to the electricity regulator, out of all the distribution companies (DisCos), AEDC has the highest fine of N1.69 billion.

The order, signed by Musiliu Oseni, NERC vice-chairman, and Dafe Akpeneye, commissioner for legal, licensing, and compliance, follows a comprehensive investigation into AEDC’s billing practices.

According to the order, NERC discovered that AEDC and other distribution companies overcharged customers between January and September 2023.

The commission said the respective fines “represent 10 percent of the overbilled amount”.

NERC also said AEDC’s annual operating expenditure would be reduced by N1.69 billion effective from September 1.

Other DisCos penalised are Eko Distribution Company (EKEDC) (N1.41 billion); Benin Distribution Company (BEDC) (N804 million); Enugu Distribution Company (EEDC) (N310 million); and Ibadan Distribution Company (IBEDC) (N15 million).

According to the order, Ikeja Distribution Company (IKEDC) will pay N1.41 billion as a fine; Jos Distribution Company (JEDC) N1.33 billion; and Kaduna Distribution Company (KAEDCO) N115 million.

Also, Kano Distribution Company (KEDCO) was fined N20 million, Port-Harcourt Distribution Company (PHDC) N1.16 million and Yola Distribution Company (YEDC) N54 million.

NERC said the penalty was a response to the distribution companies’ non-compliance with previous directives aimed at capping estimated billing for electricity consumers.