Business

‘Flagrant Breach’: NERC Imposes ₦200m Fine On AEDC For Tariff Violations, Orders Customer Refunds

The Nigerian Electricity Regulatory Commission (NERC) has slapped a hefty fine of ₦200 million on the Abuja Electricity Distribution Plc (AEDC) for the organisation’s failure to comply with regulatory directives regarding tariff billing.

The NERC had found that the AEDC had been applying the new tariff indiscriminately across all customer bands, in what the commission called a “flagrant breach” of the prescribed customer band classifications outlined in the Order. This action, which directly contravenes the regulatory framework designed to ensure equitable billing practices, prompted NERC to take swift enforcement action.

In addition to the substantial fine imposed on AEDC, the Commission has directed the electricity distributor to take immediate corrective measures, as the AEDC has been ordered to reimburse all customers falling within Bands B, C, D, and E who were billed above the allowed customer categories/tariff bands specified in the order.

Furthermore, affected customers are entitled to receive the balance of customer tokens they would have been entitled to, at the applicable rates. These token reimbursements are to be issued to the affected customers no later than April 11, 2024.

The NERC’s directive also requires AEDC to provide evidence of compliance with the reimbursement directives by April 12, 2024, saying that failure to adhere to these directives could result in further regulatory action.

The Commission then reiterated its commitment to safeguarding consumer rights and ensuring equitable practices within Nigeria’s electricity sector.

Ozioma Samuel-Ugwuezi