FG has slammed Abuja Disco with ₦1.69 billion penalty for overbilling consumers.
NewsOnline Nigeria reports that the Federal Government of Nigeria has imposed a hefty ₦1.69 billion penalty on the Abuja Electricity Distribution Company (AEDC) for the overbilling of consumers, in what is being described as a significant regulatory action aimed at protecting electricity users from exploitative practices.
This Nigeria news platform understands that the Nigerian Electricity Regulatory Commission (NERC), in a supplementary order issued in May 2025, disclosed that the deduction would be made from AEDC’s total annual operating expenditure. This sanction follows the company’s failure to comply with the existing directive on the capping of estimated billing for unmetered customers.
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According to the order, “The Commission has approved the deduction of ₦1.69 billion from the total annual OpEx of AEDC effective September 2024, being 10% of the overbilled amount by AEDC for the period covering May to September 2023.”
NERC stated that the penalty was based on a detailed review of additional data submitted by AEDC, which confirmed widespread non-compliance with the billing cap regulations designed to prevent arbitrary charges for customers without meters.
In a broader move to strengthen the electricity supply chain, the Commission also announced the creation of a Transmission Infrastructure Fund (TIF). The fund will be used to support critical transmission projects and innovative initiatives that aim to enhance the reliability and efficiency of electricity transmission across the country.
“The fund shall be centrally managed and can also be used to securitise vendor financing and other Public-Private Partnership (PPP) arrangements,” the regulatory body noted.
In addition to the financial penalty, NERC has mandated that AEDC procure a minimum of 61 megawatts (MW) of embedded generation capacity in 2024, representing 10% of its load allocation for the year. The Commission specified that at least 30MW, or 50% of that capacity, must be sourced from renewable energy.
This requirement, NERC explained, is part of efforts to improve supply reliability and maintain a minimum service level under the Service-Based Tariff (SBT) regime. AEDC can meet this target by procuring the capacity in bulk or distributing it across its franchise area.
This latest action by NERC sends a strong signal to electricity distribution companies nationwide, reaffirming the Commission’s commitment to consumer protection, regulatory compliance, and improved service delivery in Nigeria’s power sector.
