Following the new tariff order by the Nigerian Electricity Regulatory Commission (NERC), Abuja Electricity Distribution Plc (AEDC) has violated the April 2024 Multi-Year Tariff Order and has been fined a sum of N200 million for non-compliance with the supplementary order. This was made known to the public through a press release on Friday April, 2024.
The AEDC failed to comply with the prescribed customer band classifications for the tariff billing. They had applied the new tariff to all customer bands, contrary to the order, which was designed to ensure fair billing practices.
The Vice Chairman of the NERC, Musiliu Oseni, previously stated that the current review of the end user tariffs would not affect all other customers under the Band B to E-service categories, representing 85% of the customer population, leaving the band A customers which represents 15% of the population as the end users of the new tariff.
Following the AEDC violation to this order, it has been mandated 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.
“Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order,” the statement reads.
They are 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 11 April 2024.
The action by the commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector. By enforcing strict penalties and ensuring refunds for affected customers, the NERC sends a strong message that such practices will not be tolerated.
According to AEDC, the wrong charges occurred due to a system glitch caused by the reclassification of some Band A customers who have now been downgraded to B due to the number of hours of electricity supply enjoyed over the past few weeks.
Fair and transparent billing practices are crucial in the electricity sector. Instances of overcharging not only burden customers financially but also erode trust in the utility providers. It is essential for DisCos to prioritize accurate metering, precise billing, and responsive customer service.
