*The Nigerian Electricity Regulatory Commission imposes N200 million fine on the Abuja Electricity Distribution Company for ‘improper’ application of the approved tariff increase across all customer bands, as against only electricity consumers in Band A that are subject to the recent rate increment

Isola Moses | 绿帽献妻

For apparent violation of regulatory guidelines, the Nigerian Electricity Regulatory Commission (NERC) has slapped the Abuja Electricity Distribution (AEDC) Plc with a N200 million fine.

绿帽献妻 reports聽 the country’s power industry regulator, in a release issued Friday, April 5, 2024, came down hard on the electricity Distribution Company (DisCo) for failing to adhere to its tariff guidelines, thereby creating a stir among consumers and industry stakeholders alike during the week.

Earlier, the DisCo had apologised to the affected electricity consumers within its franchise network over the apparent costly error.

However, the AEDC fine comes over a weighty accusation of violating the NERC’s Supplementary Order to the recent Multi-Year Tariff Order (MYTO) issued April 3 this year.

According to NERC, AEDC “improperly applied” an approved tariff increase across all customer bands, contrary to the specific directive that only electricity consumers in Band A were subject to the rate hike.

The Commission stated: “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鈥檚 leading electricity Distribution Companies.

“The regulatory body鈥檚 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.”

NERC said: “However, AEDC鈥檚 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.”

Meanwhile, 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.

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

Moreover, NERC鈥檚 directive now requires the 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.

This incident brings to light the challenges facing Nigeria’s electricity sector, highlighting the critical need for strict adherence to regulatory orders designed to safeguard consumer interests and ensure the fair administration of energy services.

The regulatory Commission also noted: “As the NERC continues to monitor the situation closely, the outcome of this enforcement action is being watched by industry observers as a test of the regulatory framework’s effectiveness in maintaining discipline and fairness in the country’s evolving electricity market.”

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