The Abuja Electricity Distribution Company Plc (AEDC) has implemented the new power tariff of N225/kWh across all customer bands within its franchise areas, defying the directive stipulating that only power users on Band A should be subjected to the new rate. As a consequence of this action, the Nigerian Electricity Regulatory Commission (NERC) imposed a fine of N200 million on AEDC for contravening the commission’s Supplementary Order on the April 2024 Multi-Year Tariff Order.
This development comes amidst objections from manufacturers and organized labor against the 240 per cent tariff hike affecting approximately 1.9 million electricity users in Nigeria. The Federal Government approved and announced the tariff increase on Wednesday, withdrawing subsidies completely from electricity tariffs payable by consumers in the Band A category, which constitutes about 15 per cent of the total 12.82 million power users nationwide.
The tariff adjustment, announced during a press briefing in Abuja by NERC, entails an increase in the electricity bill to N225 per kilowatt-hour for affected Band A customers, up from the previous rate of N68/kWh, representing a significant surge. However, despite the government’s directive for the tariff hike to apply exclusively to Band A customers, reports emerged on Friday revealing that many customers of AEDC, not falling under Band A, were also subjected to the increased rate of N225/kWh, prompting intervention from NERC.
Customers like Mr. Yakubu expressed frustration, citing instances where they received fewer electricity units despite purchasing the same amount of tokens, raising questions about their classification within the Band A category.
In response to these concerns, NERC issued a statement confirming enforcement action against AEDC for non-compliance with the prescribed customer band classifications for tariff billing. The fine imposed on AEDC and subsequent regulatory actions underscore NERC’s commitment to protecting consumer rights and ensuring fair practices within the electricity sector. The regulator urged power users to report any discrepancies encountered with Discos’ billing practices to ensure appropriate action is taken.
