ABUJA, Nigeria – In a move to safeguard consumer rights, the Nigerian Electricity Regulatory Commission, NERC, has imposed a hefty fine of N200 million on the Abuja Electricity Distribution Company, AEDC, for the improper billing of customers.
This punitive action comes in the wake of a recent hike in electricity tariffs, which saw the AEDC wrongfully applying increased rates across various customer bands without adherence to the regulatory guidelines.
The sanction was announced through a circular dated April 5, 2024, from the management of NERC.
The regulatory body’s assessment revealed that AEDC failed to comply with the established customer band classifications for tariff billing, contrary to the stipulations of the Multi-Year Tariff Order 2024 for AEDC issued in April 2024.
Specifically, the AEDC was found to have indiscriminately applied the new tariff to all customer categories, disregarding the Commission’s directive that only customers in Band A should be subject to the increased rates.
This misapplication not only contravened the regulatory order designed to ensure fair billing practices but also led to widespread customer dissatisfaction and complaints.
As a corrective measure, NERC has ordered AEDC to immediately reimburse customers who fall under Bands B to E and were unjustly charged at the new tariff rate.
The reimbursement is to be executed through the provision of the balance of customer tokens equivalent to the overcharged amounts.
This process must be concluded by no later than April 11, 2024, underlining the urgency with which the Commission seeks to rectify the billing discrepancies.
Following the outcry over the tariff misclassification, AEDC acknowledged the oversight, attributing it to a system glitch that occurred during the reclassification of some customers from Band A to Band B.
The company has pledged to refund all excess charges to the affected customers, reaffirming its commitment to compliance with regulatory standards and consumer satisfaction.
