The Nigerian Electricity Regularly Commission (NERC) has approved the deduction of N1.69 billion from the total annual Operating Expenditure (OpEx) of Abuja Electricity Distribution Company (AEDC) effective September 2024.
This was contained in the May 2025 Supplementary Order to the Multi-Year Tariff Order (MYTO) 2024 signed by the NERC Chairman, Engr. Sanusi Garba, and Commissioner, Legal Licensing and Compliance, Dafe Akpeneye.
The regulatory Net-offs, according to NERC, was for non-adherence to the Order on Capping of Estimated Bills, explaining that it was the 10% of the overbilled amount by AEDC for the period covering May—September 2023.
The Commission has however, left Band A tariffs unchanged effective 1st May 2025, stating that the tariffs shall remain in force subject to monthly adjustments of pass-through indices, including inflation rates, NGN/US$ exchange rates and gas-to-power prices.
It also noted that in line with the policy direction of the FGN on electricity subsidy, the allowed tariffs for Bands B—E customer categories shall remain frozen at the rates payable since December 2022, subject to further policy direction by the Government. With this policy, the estimated subsidy benefit for customers under the AEDC franchise in 2025 is approximately N28.99 billion monthly.
NERC said AEDC shall be held accountable for service deliveries per commitments 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.
It said the details of the service level commitments shall be made by AEDC to customers in various tariff Bands for May 2025.
NERC said the AEDC is obligated by the Order to procure a minimum of 61MWcapacity of embedded generation, being 10% of its 2024 load allocation, to improve the reliability of supply and sustain delivery of a minimum service level under the SBT.
It said a minimum of 30MW (i.e., 50%) of the embedded generation capacity must be sourced from renewable energy sources. The required capacity may be procured in bulk or distributed capacities across AEDC’s Franchise area.
Meanwhile, the Order has made provision for the establishment of a Transmission Infrastructure Fund (TIF) 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 (NESI).
The fund, according to NERC, shall be centrally managed and can also be used to securitise vendor financing and other Public Private Partnership (PPP) arrangements to fund infrastructure gaps in the transmission network.
Accordingly, the Commission disclosed that a provision of N2.17/kWh of energy delivered to the grid off-takers has been made as the contribution towards the build-up of the TIF in 2025.
