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).
NERC stated that the deduction is for non-adherence to the order on capping of estimated bills under its jurisdiction in the country.
According to the commission, the funds were for 10 percent of the overbilled amount collected by AEDC to its customers for the period covering May to September 2023.
The electricity regulator emphasises that AEDC will be held accountable for service deliveries per commitment under its Service-Based Tariff proposals, which seek to align end-user tariffs in proportion to the service level enjoyed by customer clusters as measured in average hours of supply per day over one month.
Meanwhile, the NERC Order for May 2025 provides for the establishment of a Transmission Infrastructure Fund to support the funding of critical transmission infrastructure projects and novel initiatives necessary to facilitate the improved delivery of transmission services in the Nigeria Electricity Supply Industry
The fund will be centrally managed and can also be used to securitise vendor financing and other Public Private Partnership arrangements to fund infrastructure gaps in the transmission network.
