The Abuja Electricity Distribution Company Plc has applied the new power tariff of N225/kWh to all customer bands under its franchise areas, contrary to the directive that only power users on Band A should pay the new rate.
AEDC, according to the Nigerian Electricity Regulatory Commission, was therefore slammed a N200m fine for violating the commission’s Supplementary Order on the April 2024 Multi-Year Tariff Order.
On Thursday, The PUNCH reported that manufacturers and the organised Labour kicked against the 240 per cent hike in the tariff payable by about 1.9 million electricity users in Nigeria, which was approved and announced by the Federal Government on Wednesday.
Subsidy on electricity was withdrawn completely from the tariffs payable by power consumers on Band A category, which constitute about 15 per cent of the total 12.82 million power users across the country.
The government announced the hike in electricity bill at a press briefing in Abuja by NERC, adding that those affected would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh, representing about 240 per cent increase. The government declared that the decision took effect from April 3, 2024, and would only affect Band A customers.
Band A power users are those who get up to 20 hours’ supply of electricity daily and pay about N68/kWh before the implementation of this latest order by the Federal Government through NERC.
But on Friday, many customers of AEDC raised the alarm that they were not on Band A, but their bills had been raised to N225/kWh, a development that made NERC to intervene.
For instance, a customer who simply identified himself as Mr Yakubu said, “Interesting moment in Nigeria. On Tuesday, April 2, 2024, I bought an electricity token of N9,900, and I got 135 units.
“Yesterday, April 4, 2024, I wanted to confirm where NERC and AEDC social strata classification of electricity consumption puts me, so I bought electricity of N,9,900, and I got 40 units. There was no supply of electricity throughout the night. Can I be said to be enjoying Band A, 20 hours supply?”
Reacting to the development in a statement, the power sector regulator said, “The Nigerian Electricity Regulatory Commission has taken enforcement action against the Abuja Electricity Distribution Plc for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC.
“AEDC has been fined ₦200,000,000 for failure to comply with the prescribed customer band classifications for the tariff billing.
“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 regulator stated that the action underscored its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
Source: Punch Newspaper
