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Tariff Violation: NERC Fines Abuja DisCo (AEDC) ₦200m

By William Emmanuel Ukpoju

The Nigerian Electricity Regulatory Commission (NERC) has taken decisive action against the Abuja Electricity Distribution Plc (AEDC) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order.

According to a statement made available to Valuechain as released by NERC on Friday, AEDC has been fined a staggering ₦200,000,000 (Two Hundred Million Naira) due to its failure to adhere to the prescribed customer band classifications for tariff billing.

Sighting reasons for its actions, NERC stated that “the 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”:

  1. Reimbursement for Overbilled Customers:
    • AEDC is mandated to reimburse all customers falling within Bands B, C, D, and E. These customers were billed above the allowed tariff bands specified in the Order.
    • The reimbursement will be facilitated through the provision of customer tokens at the applicable rates. Affected customers can expect their tokens to be issued by April 11, 2024.
  2. Financial Penalty:
    • AEDC must pay a hefty fine of ₦200,000,000.00 as a consequence of its flagrant breach of the Commission’s Order.
  3. Compliance Evidence Submission:
    • AEDC is required to file evidence of compliance with the directives outlined in points (a) and with the Commission by April 12, 2024.

“This action underscores NERC’s commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector”, the statement further added.