NERC Fines AEDC N200m For Overcharging Customers, Orders Refund

The Nigerian Electricity Regulatory Commission (NERC) has imposed a fine of N200 million on Abuja Electricity Distribution Plc (AEDC) for tariff violations stemming from overcharging customers.

In a statement on Friday, NERC said AEDC must reimburse affected customers by April 11.

On April 4, AEDC, in a statement, said a system glitch led the company to overcharge some Band A customers, who have already been downgraded to Band B due to the number of hours of electricity supply enjoyed over the past few weeks.

The customers were overcharged while trying to recharge their meters following the new tariff regime.

NERC, on April 3, approved the increase in electricity tariff for customers under the B and A classifications.

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.

Commenting on the fine, NERC said the decision followed a detailed review and customer feedback, which revealed AEDC had applied the new tariff to all customer bands, contrary to the regulator’s directive, which was designed to ensure fair billing practices.

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”.

“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.”

NERC said the fine underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.