The Nigerian Electricity Regulatory Commission has sanctioned the Abuja Electricity Distribution Company Plc for applying the new power tariff of N225/kWh to all customer bands under its franchise areas.
This is contrary to the directive that only power users on Band A should pay the new rate.
The regulatory body also directed AEDC to make refunds to the defrauded customers as necessary.
AEDC, according to the NERC, was therefore given a N200m fine for violating the commission’s Supplementary Order on the April 2024 Multi-Year Tariff Order.
NERC made this known via a Press release, dated April 5, 2024, is tiled, ‘NERC Fines AEDC N200 Million for Violation of the New Tariff Order, Directs Customer Refunds.’
It reads, 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 N200,000,000 (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 N200,000,000.00 (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.
