The Nigerian Electricity Regulatory Commission (NERC) has approved deduction of N1.69bn from Abuja Electricity Distribution Company(AEDC)’s annual operating expenditure as a punitive measures for non-compliance with the order on capping estimated billings.
The directive was aimed at improving service delivery and monitoring compliance with service-based tariffs.
This was contained in a document marked “NERC/2024/114”, published on 30th August, signed by Vice Chairman, Musiliu Oseni, and Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, sighted on NERC’s website as part of the commission’s September 2024 Supplementary Order.
According to the commission, after investigating AEDC’s billing practices, it was discovered that the company had overcharged customers from January to September 2023, leading to the imposition of the fine which is equivalent to 10 per cent of the overbilled amount.
The regulatory document, titled September 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC, outlined the reasons behind the fine and adjustments to AEDC’s revenue requirements and tariffs.
NERC noted that the fine was levied in response to complaints by consumers and subsequent investigations that revealed AEDC had not adhered to the regulatory guidelines on estimated billing.
“The commission has approved the deduction of N1.69bn from AEDC’s annual operating expenditure as a penalty for non-compliance with the order on capping estimated bills.
“NERC also issued directives aimed at improving service delivery and monitoring compliance with service-based tariffs.
“AEDC is required to ensure the continuous monitoring of its service levels, particularly regarding electricity supply to Band A feeders”.
According to the commission, the Supplementary Order, will remain in effect until a new tariff review is issued.
It also said that the decision underscored NERC’s commitment to ensuring that electricity distribution companies adhere to regulatory guidelines while protecting consumers from unfair billing practices. (The Network)
