FG slams N200m fine on Abuja DisCo over tariff violation

The Federal Government has imposed a fine of N200 million on Abuja Electricity Distribution Plc (AEDC) for allegedly failing to adhere to its tariff guidelines and creating a stir among consumers and industry stakeholders.

The fine comes in the wake of the Supplementary Order to the Multi-Year Tariff Order for 2024, issued on April 3, 2024, which the Nigerian Electricity Regulatory Commission (NERC) said the AEDC has been found in violation of.

In a statement issued by the NERC on Friday, April 5, it was revealed that the Abuja DisCo improperly applied an approved tariff increase across all customer bands, contrary to the specific directive that only customers in Band A were subject to the rate hike.

According to the commission, the oversight has not only led to undue charges for customers in Bands B to E but has also called into question the operational compliance and fairness standards maintained by one of the country’s leading electricity distribution companies.

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The regulatory body’s supplementary order had initially set out to adjust tariffs in a manner that would not unduly burden the vast majority of electricity consumers, particularly those not in Band A.

However, AEDC’s misapplication of the new tariffs has breached the trust of its consumer base and contradicted the principles of transparency and equity that form the cornerstone of Nigeria’s electricity regulatory framework.

As part of its remedial directives, NERC has mandated AEDC to reimburse all affected customers in Bands B, C, D, and E through the provision of balance tokens reflective of the rates they should have been charged.

The remedial action is expected to be complied with immediately, therefore providing relief to thousands of consumers who were wrongfully overcharged.

The NERC’s directive also requires the Abuja DisCo to present evidence of compliance with these corrective measures by April 12, 2024, emphasising the urgency with which the regulatory body seeks to address and rectify the oversight.

“Failure to meet these requirements could lead to further regulatory actions, underscoring the seriousness with which NERC is approaching this breach of regulatory compliance,” the commission added.

The Star