In a swift response to recent tariff discrepancies, the Nigerian Electricity Regulatory Commission (NERC) has levied a substantial fine of N200 million against the Abuja Electricity Distribution Company (AEDC).
This penalty comes mere days after AEDC implemented increased electricity tariffs for Band A customers, contrary to regulatory guidelines. In an official statement released on Friday, NERC stated that AEDC had failed to adhere to prescribed customer band classifications for tariff billing, prompting the significant fine.
The decision follows a comprehensive review and customer feedback, which uncovered AEDC’s improper application of the new tariff to customers across different bands, a clear violation of the regulatory order designed to ensure equitable billing practices.
As part of the enforcement, NERC has mandated AEDC to take the following actions: a. Reimburse all customers in Bands B, C, D, and E who were erroneously billed above the designated customer categories/tariff bands outlined in the order. b. Facilitate prompt reimbursement by providing affected customers with the remaining balance of tokens entitled to them at the appropriate rates. All token reimbursements must be completed by April 11, 2024. c. Pay a fine of N200 million for the flagrant breach of the Commission’s order. d. Submit evidence of compliance with the directives outlined in points a and c to NERC by April 12, 2024.
NERC emphasized that its decisive action underscores a commitment to protecting consumer rights and ensuring fairness within Nigeria’s electricity sector.
In response to the fine, AEDC acknowledged the billing errors experienced by some customers, attributing them to a system glitch. The company issued a statement on Thursday, acknowledging the erroneous charges faced by Band A customers attempting to recharge their meters under the new tariff regime.
AEDC explained that a system glitch, caused by the reclassification of certain Band A customers to Band B due to recent electricity supply durations, led to the incorrect charges. The company assured affected customers that all excess charges would be promptly refunded and expressed its commitment to improving power supply across all customer categories.
The fine imposed by NERC serves as a clear signal of regulatory vigilance in upholding standards and protecting consumer interests within the electricity sector.
