NERC fines AEDC N200m for violating new tariff order

By Abubakar Yunusa

The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N200 million on the Abuja Electricity Distribution Plc (AEDC) for allegedly failing to adhere to prescribed customer band classifications for tariff billing.
The sanctions were announced in a statement on Friday by NERC management following complaints from several Abuja residents attempting to purchase electricity units days after a tariff hike was announced.
“This decision follows a thorough review and customer feedback, revealing that AEDC applied the new tariff to all customer bands, contrary to the Order designed to ensure fair billing practices.
“AEDC is thus mandated to: a. Reimburse all customers in Bands B, C, D, and E respectively billed above the permitted customer categories/tariff bands as stipulated in the Order.
“Reimburse affected customers with the remaining balance of customer tokens they are entitled to receive at the applicable rates, with all token reimbursements to be issued to affected customers by April 11, 2024.
“Pay a fine of N200,000,000.00 (Two Hundred Million Naira) for the blatant breach of the Commission’s order.
“Provide evidence of compliance with directives a & c to the Commission by April 12, 2024.
“The Commission’s action underscores its commitment to safeguarding consumer rights and ensuring equitable practices within Nigeria’s electricity sector,” the statement concluded.
However, AEDC had issued an apology to its customers for overcharging when attempting to recharge their meters.
In a notice to its Abuja customers on Thursday, the company acknowledged the erroneous charges resulting from a system glitch.
“We wish to inform customers across the AEDC franchise that we are aware of incorrect charges experienced by some Band A customers attempting to recharge their meters, following the implementation of the new tariff regime.
“This is attributed to a system glitch caused by the reclassification of certain Band A customers, now downgraded to Band B due to the duration of electricity supply enjoyed over the past few weeks”, AEDC stated.