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Electricity Tariff: NERC slams N200m fine on AEDC

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The National Electricity Regulatory Commission (NERC) has slammed a N200m fine on Abuja Electricity Distribution Company for violating the new electricity tariff order as stipulated by the regulatory body.

The decision to axe the distribution company was taken over it’s failure to comply with the prescribed customer band classifications for the tariff billing.

In a statement posted on its verified X (formerly Twitter) handle, NERC stated that the action 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.”

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

“AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) 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.” the statement partly read.

NERC further orders AEDC to refund customers whose classifications do not fall under the recently increased tariff band.

“AEDC is therefore mandated to: 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 ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

“File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.” the statement said.

Recall that the Federal Government through the National Electricity Regulatory Commission (NERC) had announced an increase in tariff of electricity consumers under the “Band A” category from N68 per kilowatt to N225 per kilowatt.

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