NERC Fines AEDC ₦200m for Violating New Tariff Order

The Nigerian Electricity Regulatory Commission (NERC) has fined Abuja Electricity Distribution Company (AEDC) the sum of two hundred million naira (₦200,000,000) for increasing tariff of customers that are not on band A.

NERC had earlier announced the hike in Band A tariff on Thursday with the rates of Bands B to E unchanged.

It explained that Band A customers will receive a minimum of 20 hours of electricity supply per day – which occupies about 15% of the total consumer population – and Band B customers, a minimum of 16 hours per day.

While Band C customers are expected to ‘experience’ a minimum of 12 hours of electricity supply per day, Band D and Band E customers will receive a minimum of 8 hours and 4 hours per day respectively.

Meanwhile, NERC has ordered AEDC to refund customers in Bands B, C, D and E respectively who have been billed above their tariff bands by Thursday, April 11, 2024.

The Commission disclosed this in a statement signed by its management on Friday.

“The Nigerian Electricity Regulatory Commission (“Commission”) 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,” the statement reads in part.

NERC mandated AEDC to 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.

It also mandated the distribution company to ‘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’.

Other mandates given to AEDC include; “Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

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

NERC assured the citizens of its commitment to protecting consumer rights and ensuring equitable practices within the electricity sector.

Hope Ejairu

Hope Ejairu is a writer, sports analyst and journalist, with publications on print and digital media. He holds certifications in various media/journalism trainings, including AFP.

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