For Violating New Tariff Order, NERC Places N200 million Fine on Abuja Disco

The Nigerian Electricity Regulatory Commission (NERC) has slammed a two hundred million naira charges on Abuja Electricity Distribution Plc(AEDC) for violating the new Tariff Order and ordered for immediate refund of customers who were wrongly applied the new order.

The NERC said the charge followed a review of customer feedback it received after the disco implemented the new tariff order in which it applied the order to all customers regardless of their band category.

In a statement via the commission’s X handle, it said the Abuja distribution company has been mandated to reimburse customers on Band B to E through the provision of balance customer token that the affected customers would be entitled to receive at the applicable rates before April 11th, ai addition to payment if two hundred million naira as fine for what it described as the ‘flagrant breach of the Commission’s Order ‘.

“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”.

“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”.

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“Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order”, read the statement in parts.

While assuring electricity consumers its commitments to protect their rights, the commission mandated the Abuja disco to file in evidences of compliance with the directives with the commission by April 12th.

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