Commission Fines Electric Distribution Company Over New Tariff Order

By: Chioma Eche, Abuja.

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.

AEDC has been fined the sum of ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing earlier reviewed.

This decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary 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 sanction fell on 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 in Abuja, said it sanctioned AEDC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC”

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.

Reimbursement

NERC, called on the distribution company saying 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.

“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 202″ it said .

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

Olusola Akintonde