Tariff Hike: NERC slams N200m fine on AEDC for overcharging customers

There have been complaints from customers outside this category that were also charged the new rate even though they don’t get the 20-hour supply.

By Saidu Idris

365Daily – The Nigerian Electricity Regulatory Commission (NERC) has asked the Abuja Electricity Distribution Company (AEDC), to pay the sum of N200million as fine for charging customers that are not on Band A higher tariff.

On Wednesday, April 5, 2024, the NERC increased electricity tariff for customers on Band A, that is customers who receive a minimum of 20 hours of power supply per day, from N66 to N255 per unit.

However, there have been complaints from customers outside this category that were also charged the new rate even though they don’t get the 20-hour supply.

AEDC admitted on Thursday that some customers were wrongly billed, but it was due to a glitch in its system.

But in a statement issued on Friday, the Commission said AEDC has been fined ₦200,000,000 for failure to comply with the prescribed customer band classifications for tariff billing.

It stated, “This 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: a. 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. b. 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.

“c. pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order. d.File evidence of compliance with the directives in a & c with the Commission by 12 April 2024”.

NERC said the sanction “underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.”

 

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