NERC slams AEDC N1.69bn fine for overbilling customers

NERC slams AEDC N1.69bn fine for overbilling customers

The Nigerian Electricity Regulatory Commission, NERC has slammed a N1.69 billion fine on Abuja Electricity Distribution Company for overbilling customers.

NERC disclosed this document titled, '2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC', released on its website on Thursday.

This comes after an investigation of AEDC's billing practices by NERC revealed that it overcharged customers from January to September 2023, leading to the imposition of a fine which is equivalent to 10 percent of the overbilled amount.

NERC attributed the fine and adjustments to AEDC's revenue requirements and tariffs.

The commission stated that it had "approved the deduction of N1.69bn from the total annual OpEx of AEDC effective September 2024, being 10 percent of the overbilled amount by AEDC for the period covering January-September 2023.

In addition, AEDC was urged to ensure the continuous monitoring of its service levels, particularly regarding electricity supply to Band A feeders.

"Where AEDC fails to deliver on the committed level of service on a Band A feeder for consecutive two days, AEDC shall on the next day by 10 am publish on its website an explanation of the reasons for the failure," the order specified.

The development comes in the face of several complaints by Abuja residents and customers of AEDC over the company's inability to meet its Service Level Agreement of a minimum m 20 hours of daily electricity supply for Band A feeders.

Recall that in April 2024, NERC also fined AEDC, N200 million over tariff violation.

Comments

Keep up to date with our latest articles and uploads...