The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Plc (AEDC) N200 million for making all residents of Abuja, Niger, Kogi, and Nasarawa States pay higher electricity bills than required.
AEDC put many residents under the Band A category rather than separate them into the available five bands. The Band A category of consumers are those that get 20 to 23 hours of electricity daily and pay N225 per kilowatt of energy per hour (Kwh). All the residents paid N68 per Kwh before the NERC’s recent classification.
The electricity sector regulator said the distribution company failed to comply with the prescribed customer band classifications for tariff billing.
AEDC has also been ordered to make refunds to the residents in seven days.
The full statement titled, NERC Fines AEDC ₦200 Million for Violation of the New Tariff Order, Directs Customer Refunds’ reads:
“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”). 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.
“AEDC is therefore mandated to:
a. 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.
b. 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.
c. Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.
d. 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.”
In a public notice, AEDC tried to downplay its misdemeanour, blaming it on a glitch from its system. Below is the notice:
