NERC Moves to Deduct N1.69 Billion From Abuja DisCo For Overbilling Customers
- The Nigerian Electricity Regulatory Commission (NERC) has approved a fine of N1.69bn against Abuja Electricity Distribution Company (AEDC)
- The firm disclosed that the deduction was due to the DisCos’ non-compliance with an order to cap estimated billing
- NERC said the money was deducted from AEDC’s operating expenditure for 2023 for the infraction
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Electricity Regulatory Commission (NERC) has approved the deduction of N1.69 billion from the annual operating expenses of Abuja Electricity Distribution Company (AEDC).
NERC disclosed in its May 2025 supplementary order that the deduction was due to AEDC’s non-compliance with the order on capping estimated bills and a review of data further provided by the DisCo.
Source: Getty Images
NERC gives a reason for the deduction
According to reports, NERC approved the N1.69 billion deduction from the total annual OpEx of the DisCo effective September 2024, representing 10% of the overbilled amount by the company for May to September 2023.
The commission disclosed that it has provided the creation of a transmission infrastructure fund (TIF) to finance essential transmission projects and create initiatives to boost the delivery of transmission services in the electricity sector.
The report said:
“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 electricity regulator said that AEDC is obliged by the order to procure a minimum of 61-megawatt capacity of embedded generation, amounting to 10% of its 2024 load allocation.
TheCable reports that NERC said the move will improve the reliability of supply and sustain delivery of a minimum service level under the service-based tariff (SBT).
“A minimum of 30MW (i.e., 50%) of the embedded generation capacity must be sourced from renewable energy sources,” NERC said.
NERC orders eight DisCos to downgrade customers
NERC’s report said the required capacity may be procured or distributed across the DisCos' franchise area.
Legit.ng previously reported that NERC has ordered eight electricity distribution firms to downgrade 18 electricity feeders in the Band A feeders to lower bands over their inability to supply a minimum of 20 hours of power to the affected customers.
The commission also ordered the DisCos to compensate Band A customers in 213 feeders.
The breakdown of the affected DisCos
The order was contained in the May 2025 Supplementary Order to the Multi-Year Tariff Order (MYTO).
An analysis shows that EKDC has the largest number of feeders to be compensated, with 84 feeders.
Eko and Ikeja DisCos have the highest feeders
Daily Trust reports that while the main reason was the DisCos’ inability to meet the 20-hour power supply demand, 37 feeders were compensated for load shedding caused by the Transmission Company of Nigeria (TCN).
Ikeja Electric came next with 50 feeders to be compensated, as three were downgraded to lower bands.
However, the company has not received approval to upgrade eight feeders to higher bands.
Also, Enugu DisCo was directed to compensate customers on 15 feeders, with two feeders downgraded.
Source: Getty Images
Kaduna DisCo has eight feeders to be downgraded, while Yola DisCo was asked to downgrade two feeders.r
Aba Power begins free prepaid meter Rollout
Legit.ng earlier reported that Aba Power has begun the rollout of the second phase of its prepaid meter installation scheme.
The power utility company resumed operations with 20,000 smart meters provided by Eves Metering of China, which will be fully installed within one month at a cost of approximately N3.5 billion.
However, the firm said it is not providing metres simultaneously to all its coverage areas.
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Source: Legit.ng
