Due to a tariff breach, Abuja Electricity Distribution Plc (AEDC) was fined N200 million by the Nigerian Electricity Regulatory Commission (NERC).
On Friday, NERC’s X handle released a statement that included this.
Customers and industry stakeholders were outraged, according to NERC, since AEDC was penalized for not following its tariff rules.
According to the agency, the decision was made in response to customer comments and a thorough assessment, which showed that AEDC had applied the new rate to all client bands in violation of the Order, which was created to guarantee equitable billing procedures.
As a result, the Order required AEDC to refund any and all consumers in Bands B, C, D, and E that were billed in excess of the permitted customer categories and tariff bands.
The text of the statement is as follows: “NERC Fines AEDC ₦200 Million for Violation of the New Tariff Order, Directs Customer Refunds
Abuja Electricity Distribution Plc (“AEDC”) is the target of enforcement proceedings by the Nigerian Electricity Regulatory Commission (“Commission”) for failing to abide by the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). Two hundred million naira (₦200,000,000) has been penalized to AEDC for not adhering to the recommended consumer band categories for tariff invoicing.
This decision is the result of a thorough investigation and input from customers, which showed that AEDC had implemented the new rate across all client bands in violation of the Order, which was created to guarantee equitable billing procedures.
Thus, AEDC is required 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.”
