NERC fines AEDC N200m for violation of new tariff order

NERC fines AEDC N200m for violation of new tariff order

The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Plc (AEDC) N200,000,000 over tariff violations after overcharging customers.

In a statement on Friday, April 5, 2024, the agency said the decision follows a detailed review 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.

NERC therefore, directed 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.

“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,” the statement read.

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 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.

“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.

“Pay the sum of N200,000,000.00 (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.”

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