NERC fines AEDC N200m for overcharging customers, demands refunds

The Nigerian Electricity Regulatory Commission (NERC) has imposed a hefty fine of N200 million on the Abuja Electricity Distribution Company (AEDC) for overcharging customers.

In an X post released on Friday, NERC not only imposed the fine but also mandated AEDC to reimburse affected customers by April 11th, 2024.

According to NERC, the fine stems from “tariff violations” committed by AEDC. While the specific details of the overcharging haven’t been disclosed, the statement mentions that customers in Bands B, C, D, and E were illegitimately billed above the rates designated for their categories.

NERC, on April 3, approved the increase in electricity tariff for Band A customers.

The commission said customers who receive 20 hours of electricity supply daily will pay N225 per kilowatt (kW), starting from April 3 — up from N66.

The regulator said AEDC is 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”.

READ ALSO: Why we gave approval for DisCos to hike electricity tariff —NERC

“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.”

AEDC has responded by claiming a “system glitch” led to the issue and that they have already downgraded some Band A customers to Band B to reflect their actual electricity consumption. However, NERC’s directive extends beyond this specific correction and demands wider compensation.

This incident highlights ongoing concerns about fair electricity pricing in Nigeria.

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