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NERC Sanctions AEDC With N200 Million Fine Over Abuse Of New Tariff

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…. Directs Customer Refunds Of Over Charged tariff

The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N200 million on the Abuja Electricity Distribution Company (AEDC) over violations of the two-day old new tariff order announced by the apex regulator of the Nigerian Electricity Supply Industry (NESI)

NERC had on Wednesday announced a hike in electricity tariff for consumers on Band A feeders being serviced up to 20 hours power supply per day. The 15 percent electricity consumers on Band A were now required to be paying N225 per KW/hr as new tariff as against the previous N68 per KW/hr tariff.

Shortly, after the NERC’s announcement of the New Tariff Order, the AEDC hiked tariff for all customers on A- E against the provisions of the Order and this elicited general complaints from electricity consumers within the franchise of the AEDC.

Reacting to the violations by the AEDC, NERC management disclosed in statement Friday that it “has taken enforcement action against the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

“This decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.

“AEDC is therefore mandated to:
a. Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

“b. Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.

“c. Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

“d. File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector. “

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