Electricity Tariff Hike: NERC fines AEDC N200m for violation

The Nigerian Electricity Regulatory Commission, NERC, has fined Abuja Electricity Distribution Plc, AEDC, N200 million over tariff violation.

This was contained in a statement on Friday via NERC’s X handle.

NERC said AEDC was penalized for failing to adhere to its tariff guidelines, creating a stir among consumers and industry stakeholders alike.

The agency said the 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.

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It, therefore, mandated 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 statement reads: “NERC Fines AEDC ₦200 Million for Violation of the New Tariff Order, Directs Customer Refunds
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 ₦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 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 ₦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.”