… Directs Refund To Customers
THE Nigerian Electricity Regulatory 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.
AEDC has been fined Two Hundred Million Naira (₦200,000,000) 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.
- Pay the sum of Two Hundred Million Naira (₦200,000,000.00) as a fine for the flagrant breach of the Commission’s Order.
- File evidence of compliance with the directives in A and C with the Commission by 12 April 2024.
A statement by the Commission says its action underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
Eighteen-Eleven Media reports that NERC had on Wednesday given the go-ahead for an upward review of the electricity rates for customers in the Band A category.
During a press briefing in Abuja, the Vice Chairman of NERC, Musliu Oseni, announced that there will be a rise in electricity tariffs. This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66.
According to Oseni, under the new tariff, customers on Band ‘A’ who enjoy twenty hours of electricity supply daily will now pay 225 naira kilowatts per hour. He further said that customers in Band ‘A’ are fifteen percent of the total electricity customers in the country.
Customers on other bands are not affected by the new tariff, he stated.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 percent now qualify as Band-A feeders. These feeders only service 15 percent of total electricity customers connected to the feeders.
“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour.”
Details on Consumers Service Bands and Duration of Electricity Supply.
Band A: 20 to 24 Hours supply
Band B: 16 to 20 Hours supply
Band C: 12 to 16 Hours supply
Band D: 8 to 12 Hours supply
Band E: 4 to 8 Hours supply
Eighteen-Eleven Media