Home ยป NERC fines N200m to AEDC for flouting new tariff order

NERC fines N200m to AEDC for flouting new tariff order

by Adeyemi Adecom
NERC fines N200m to AEDC for flouting new tariff order

The Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution (AEDC) PLC for flouting the customer band classifications electricity billing provisions in the new tariff order it announced on Wednesday.

A statement by the Commission on Friday said: “The Nigerian Electricity Regulatory Commission has taken enforcement action against the AEDC PLC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC. AEDC has been fined two hundred million Naira (โ‚ฆ200,000,000) for failure to comply with the prescribed customer band classifications for the tariff billing.

“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 โ‚ฆ200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commissionโ€™s Order,

D. File evidence of compliance with the directives in A & C with the Commission by 12 April 2024.”

According to the statement, the action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeriaโ€™s electricity sector.

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