The Nigerian Electricity Regulatory Commission has imposed a fine of N1.69 billion on the Abuja Electricity Distribution Company for overbilling its customers from January to September 2023.
This penalty results from AEDC’s non-compliance with NERC’s directive to cap estimated billing, according to Nairametrics.
The fine, detailed in ‘Order NERC/2024/114,’ was issued on August 30, 2024, and is based on an investigation that found customers were overcharged during the specified period.
The amount of the fine is equivalent to 10% of the total overbilled sum.
NERC’s order reads, “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 N1.69Bn from the total annual OpEx of AEDC effective September 2024, being the 10% of the overbilled amount by AEDC for the period covering January–September 2023.”
The Nigerian Electricity Regulatory Commission is updating the electricity tariffs for the Abuja Electricity Distribution Company for the period from September to December 2024.
The revision incorporates an exchange rate of N1,601.50 to the US dollar, Nigeria’s inflation rate of 33.4% for July 2024, and a US inflation rate of 2.9%.
These indices will influence the new tariff projections.
The review also maintains the January 2024 projection of an average offtake of 611MWh/h for Abuja DisCo. Additionally, NERC has set the benchmark gas-to-power price at US$2.42/MMBTU and a gas transportation tariff at US$0.80/MMBTU under the Petroleum Industry Act (PIA) 2021.
