Tariff violation: NERC slams AEDC with 200m fine

Tariff violation: NERC slams AEDC with 200m fine
April 05 12:54 2024 Print This Article

The Nigerian Electricity Regulatory Commission (NERC) has slammed a fine of N200 million on the Abuja Electricity Distribution Plc (AEDC) over the Disco’s non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for power distribution companies (DisCos).

Announcing this on their verified X page, NERC disclosed this enforcement action against AEDC in a letter to its acting managing director, Victor Ojelabi, dated April 5, 2024.

According to the letter, AEDC was fined for the flagrant breach of the Commission’s Order for failing to comply with the prescribed customer band classifications for the tariff billing.

The Commission said this decision followed a detailed review and customer feedback, which revealed that AEDC had applied the new tariff of N225 per kilowatt hour to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.

NERC, therefore, ordered AEDC to reimburse all customers in Bands B, C, D, E, respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

The commission also mandated AEDC 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 April 11, 2024.

The Disco is also required to pay the N200 million fine and file evidence of compliance with the directives with the Commission by April 12, 2024.

NERC said this action underscored its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.

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