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The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty fine of N200 million on Abuja Electricity Distribution Plc (AEDC) for overcharging customers.
This decision follows a system glitch that led AEDC to overcharge some Band A customers, who were subsequently downgraded to Band B due to the hours of electricity supply they received in recent weeks.
The overcharging incident occurred while customers were trying to recharge their meters under the new tariff regime.
NERC approved an increase in electricity tariff for Band A customers on April 3, raising the cost per kilowatt (kW) from N66 to N225 for those receiving 20 hours of electricity supply daily.
The commission’s decision to fine AEDC was based on a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, in direct violation of NERC’s directive aimed at ensuring fair billing practices.
In response to this breach, NERC has mandated AEDC 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.”
The reimbursement process must be completed by April 11, 2024, through the provision of the balance of customer tokens at the applicable rates.
Furthermore, AEDC is required to pay a fine of ₦200,000,000.00 (Two Hundred Million Naira) for its flagrant breach of the Commission’s Order.
The company must also provide evidence of compliance with these directives to NERC by April 12, 2024.
This action by NERC highlights its commitment to safeguarding consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
By imposing a substantial fine and ordering refunds, NERC aims to prevent such violations in the future and to maintain a fair and transparent billing system for electricity consumers across the country.
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