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The Nigerian Electricity Regulatory Commission (NERC) has imposed sanctions on the Abuja Electricity Distribution Company (AEDC) for wrongly applying the new electricity tariffs on some residents of the Nigerian capital.
The sanctions include a N200 million fine and a directive that the wrongly billed customers should be appropriately refunded.
The sanctions were announced in a Friday statement by the NERC management following complaints by several Abuja residents who tried to buy electricity units days after a tariff increase was announced.
The NERC Vice Chairperson, Musiliu Oseni, who disclosed this while speaking at a press conference in Abuja on Wednesday explained that only electricity customers in band A would be affected by the increase.
He noted that the increase would not affect Bands B, C, D and E while noting that the number of customers previously on Band A has been reduced.
Band A customers are offered an average daily electricity supply of 20 hours, although many complain they do not get up to that.
The official said the Band A consumers represent 15 per cent of the population but consume 40 per cent of the nation’s electricity.
Accordingly, he said, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.
But following the new tariff regime announcement, Abuja residents on other bands who tried to buy electricity units were also made to pay the new charges although the AEDC attributed the wrong charges to a system glitch.
Apologising in a statement on Thursday, the AEDC said it was aware of the wrong charges faced by some Band A customers who tried to recharge their meters following the new tariff regime.
“This is to inform customers across the Abuja Electricity Distribution Plc (AEDC) franchise that we are aware of the wrong charges faced by some Band A customers who tried to recharge their meters following the new tariff regime.
“This was due to a system glitch caused by the reclassification of some Band A Customers who have now been downgraded to Band B due to the number of hours of electricity supply enjoyed over the past few weeks.
“These erstwhile Band A customers who vended were charged the new tariff of N225 per Kilowatt Hour. Our team is working to identify the customers affected and all excess charges will be refunded,” it said.
It said the situation also saw some Band A customers who are now charged N225 vend at the old rate.
Once the glitch is resolved, the AEDC said this category of customers will now recharge their meters at the new rate of N225, which will ensure they enjoy a minimum supply of 20 hours daily.
Sanction
NERC, in its statement on Friday, said it has taken enforcement action against the AEDC for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.
“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,” the commission said.
The commission mandated AEDC to reimburse all customers in Bands B, C, D and E respectively who 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 N200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order and file evidence of compliance with the directives in a & c with the commission by 12 April 2024,” the electricity regulator said.
“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector,” the statement said.
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