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NERC Imposes ₦200 Million Fine On AEDC For Tariff Violation

The Nigerian Electricity Regulatory Commission (NERC) has levied a hefty fine of ₦200 million against the Abuja Electricity Distribution Company Plc (AEDC) for its failure to adhere to tariff directives. 

The AEDC implemented the new power tariff of N225 per kilowatt-hour (kWh) across all customer bands within its franchise areas, contrary to the specified directive that only customers in Band A should be subjected to the revised rate.

PLATFORM TIMES reports that the punitive measure stems from the violation of the commission’s Supplementary Order regarding the April 2024 Multi-Year Tariff Order.

 The directive aimed to mitigate the impact of tariff adjustments specifically for customers falling under Band A, who constitute a smaller portion of the total power user base.

The decision to impose the fine followed widespread disapproval from manufacturers and organized labor regarding the significant 240 per cent tariff hike affecting approximately 1.9 million electricity consumers nationwide. 

Notably, the subsidy on electricity was entirely removed from the tariffs applicable to Band A customers, representing a substantial shift in billing dynamics.

Initially announced by the Federal Government through NERC, the tariff adjustment was slated to affect only Band A customers, characterised by receiving up to 20 hours of electricity supply daily and previously paying N68/kWh. 

However, reports emerged on Friday revealing that numerous AEDC customers, not falling under Band A classification, experienced a surge in their bills to N225/kWh, prompting NERC’s intervention.

In response to the situation, NERC emphasized its commitment to enforcing regulatory measures to uphold consumer rights and ensure fair practices within the electricity sector. 

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