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NERC fines AEDC N200m for over-billing non-Band A customers

THE Nigerian Electricity Regulatory Commission (NERC) sanctioned the Abuja Electricity Distribution Plc (AEDC) on Friday, April 5, for overbilling customers not originally classified in Band A.

The sanction followed non-compliance with the Supplementary Order of the April 2024 Multi-Year Tariff Order (MYTO) 2024 from NERC, which said only customers in Band A were affected by a tariff increment.

Recall that NERC approved a 300 per cent hike in the electricity tariff to N225 ($0.15) per kilowatt-hour from N68 for customers categorised under Band A of its service-reflective tariff. This increase took effect on April 1.


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The AEDC consequently went on to bill customers not captured under Band A, forcing NERC to impose the ₦200 million sanction on it.

The regulatory enforcement decision was signed by NERC commissioner Dafe Akpeneye, who oversees legal licensing and compliance.




     

     

    It noted that the sanction followed 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.

    In line with the sanction, NERC mandated the  AEDC to ensure the following:

    •  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.
    •  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.
    • Pay the sum of ₦200 million as a fine for the flagrant breach of the commission’s order.
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    •  File evidence of compliance with the commission’s directives in a & c by 12 April 2024.

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

    On Thursday, April 4, The ICIR reported that the AEDC apologised to customers in its franchise areas who were overbilled and were not originally categorised for Band A, as they cited a system glitch for the error.

     

     

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

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