NERC Fines AEDC ₦200 Million for Violation of Tariff Order, Orders Customer Refunds

In a bid to enforce compliance with regulatory measures and uphold consumer rights, the Nigerian Electricity Regulatory Commission (NERC) has levied a hefty fine of ₦200 million against the Abuja Electricity Distribution Plc (AEDC). The sanction comes as a consequence of AEDC’s failure to adhere to the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024, resulting in unfair billing practices.

Following meticulous scrutiny and customer feedback, it was discovered that AEDC had indiscriminately applied the new tariff across all customer bands, contrary to the specified guidelines aimed at ensuring fair billing practices.

As a result, NERC has mandated the following actions:

1. Customer Refunds: AEDC is directed to reimburse all customers in Bands B, C, D, and E who were billed above the prescribed customer categories/tariff bands outlined in the Order.
2. Token Reimbursements: Affected customers are entitled to receive the balance of customer tokens at the applicable rates, with all token reimbursements to be issued by 11 April 2024.
3. Fine Payment: AEDC is required to pay a fine of ₦200,000,000.00 (Two Hundred Million Naira) for the blatant breach of the Commission’s Order.
4. Compliance Reporting: AEDC must file evidence of compliance with the directives outlined above with the Commission by 12 April 2024.

This decisive action by NERC underscores its unwavering commitment to safeguarding consumer rights and fostering equitable practices within Nigeria’s electricity sector.