NERC fines AEDC N200m for violation of new tariff Order
2 min read
...Directs company to refund customers
By Chris Ochayi
The Abuja Electricity Distribution Company, AEDC, has been fined N200 million by the Nigerian Electricity Regulatory Commission, NERC, for applying the new tariff to all customer bands in its franchise.
This is contrary to the Supplementary Order of the April 2024 Multi-Year Tariff Order 2024 for AEDC, which approved 250 percent increase in electricity tariff for consumers in the Band A category.
The regulatory agency’s hammer fell on the AEDC after the company was caught violating the Order which was designed to ensure fair billing practices.
The management of NERC in a statement issued to this effect on Friday in Abuja, said it sanctioned AEDC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC .
According NERC, “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 approved tariff hike for customers in Band A.
It stressed further that, “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 ₦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.
“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.”
