Electricity Tariff Hike: NERC Fines Abuja DisCo ₦200m For Violation, Directs Customer Refunds

April 5, 2024
Electricity Tariff Hike: NERC Fines Abuja DisCo ₦200m For Violation, Directs Customer Refunds

 The Nigerian Electricity Regulatory Commission (NERC)  has slammed a fine of ₦200 million on the Abuja Electricity Distribution Company (AEDC) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order.

The Commission which made this known in a statement signed issued on Friday, said it was “for failure to comply with the prescribed customer band classifications for the tariff billing.”

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Prime Business Africa reports that the AEDC had following the Federal Government’s decision to increase tariffs for consumers on Band A,  began implementation.

The DisCo, however, applied the new rate of N255kwh in billing customers across all bands instead of only Band A. Following complaints and outrage by customers, the Abuja DisCo tendered an apology and promised to reverse it.

NERC said in its statement that the decision to impose a fine on AEDC 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.

READ ALSO: Metering All Consumers Only Way To Increase Revenue Collection By DisCos, Not Tariff Hike – Expert

“AEDC is therefore 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.”

The electricity regulatory body directed the Abuja DisCo 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.

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

“File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.”

The statement added that action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.

Victor Ezeja

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

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