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NERC Slaps AEDC ₦200 Million For Violation Of New Tariff Order

NERC imposes a ₦200 million fine on AEDC for tariff violations and instructs refunds to customers.

Published

1 year ago

April 5, 2024

VerseNews

NERC imposes a ₦200 million fine on AEDC for tariff violations and instructs refunds to customers.

AEDC applied the new tariff to all customer bands, contrary to prescribed classifications, leading to the enforcement action.

NERC directs reimbursement for customers billed above allowed tariff bands.

In response to Abuja Electricity Distribution Plc’s (AEDC) implementation of the new tariff across all customer categories, the Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty fine of ₦200 million.

VerseNews reports that the commission, citing non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order, directed AEDC to refund customers accordingly.

NERC’s decision stems from a thorough review and customer feedback, revealing AEDC’s failure to adhere to prescribed customer band classifications for tariff billing, which contravened the Order designed to ensure equitable billing practices.

As a result, NERC has mandated AEDC to reimburse customers falling under Bands B, C, D, and E, who were billed above the permitted customer categories/tariff bands outlined in the Order.

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According to a press release by NERC on April 5, 2023, AEDC is mandated to:

(1) 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.

(2) 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.

(3) Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

(4) File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

This Online News Media understands that the action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.