Business

NERC fines AEDC ₦200m for violating new tariff order

… directs customer refunds

By Stella Odueme

The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Plc (AEDC) the sim of ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

NERC said the enforcement action is in non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.

A statement signed by NERC management in Abuja at the weekend said rather than applying the new tariff to only band A customers as specified, AEDC applied the new tariff to all customer bands.

“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 has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.”

The statement mandated AEDC to refund the new tariff it applied to other bands classifications.

” 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 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 D Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.”

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