By Modupe Gbadeyanka
The Abuja Electricity Distribution Plc (AEDC) has been fined N200 million by the Nigerian Electricity Regulatory Commission (NERC) for failure to comply with the prescribed customer band classifications for the new tariff billing.
On Wednesday, the regulator approved a new tariff of N225 per kilowatts per hour for customers on the Band A feeder from the previous N68 per Kwh.
The affected energy consumers were to be supplied at least 20 to 24 hours of electricity per day for the new amount.
Most electricity distribution companies (DisCos) in the country commenced the implementation of the new tariff on Thursday, promising to migrate more customers to the premium category.
In a statement signed by the management on Friday, NERC disclosed that it has sanctioned AEDC for not complying with the agreement for the new tariff, and has asked the energy firm to refund customers wrongly charged the new rate.
The regulatory agency noted that it took action on AEDC after reviewing customers’ feedback since the implementation of the new price regime.
It further emphasised that it underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
“NERC has taken enforcement action against AEDC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.
“AEDC has been fined N200 million 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 that were billed above the allowed customer categories/tariff bands provided in the order.
“[It is also to 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 April 11, 2024,” parts of the statement disclosed.
NERC further directed the DisCo to “file evidence of compliance with the directives in a & c with the commission by April 12, 2024.”
