NERC fines AEDC N200m over tariff violation

The Nigerian Electricity Regulatory Commission (NERC) has slapped a N200 million fine on Abuja Electricity Distribution Plc (AEDC) for the violation of the new tariff order.

NERC said it penalised AEDC for failing to adhere to its tariff guidelines while creating a stir among consumers and industry stakeholders alike.

“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”),” the statement read.

“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.”

NERC also 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.

It said the reimbursement by the electricity distribution company through the provision of the balance of customer tokens.

NERC added 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.

AEDC has also been ordered to file evidence of compliance with the directives 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,” NERC stated.

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