In a bid to ensure transparency and fairness in electricity billing practices, the Nigerian Electricity Regulatory Commission (NERC) has issued directives to all Electricity Distribution Companies (DisCos) regarding the implementation of the April 2024 Supplementary Multi-Year Tariff Order.
The new tariff order empowers DisCos to implement A N225 kilowatt per hour tariff for Band A customers, entitled to at least 20 hours of electricity supply per day.
The directives, outlined in a circular signed by Abba Terab, Market Competition, and Rates DGM, mandate DisCos to provide clarity to affected customers and adhere to specific guidelines.
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According to the circular, DisCos are required to implement the following updates:
1. Maintain ONLY the newly approved Band A feeders listed in the April 2024 supplementary orders for vending to prepaid customers and billing for postpaid customers.
2. Post the schedule of approved Band A feeders affected by the rate review on their websites.
3. Set up a portal on their websites by April 10, 2024, allowing customers to check their current Bands by entering their meter or account numbers.
4. Refund customers wrongly billed at the new rate through energy tokens no later than April 11, 2024, and provide evidence of compliance by April 12, 2024.
5. Ensure compliance with the requirements listed above, with ongoing monitoring by the Commission and support provided to stakeholders as needed.
The issuance of these directives follows reports of non-compliance by Abuja Electricity Distribution Plc (AEDC), which implemented the new tariff order for all bands of electricity customers under its jurisdiction. As a consequence, NERC levied a heavy fine of N200 million on AEDC for violating the Order and failing to adhere to prescribed customer band classifications for tariff billing.
“AEDC has been fined ?200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing,” NERC said in a statement.
NERC said its decision to take enforcement action against AEDC underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector. The Commission’s thorough review and customer feedback revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order’s provisions aimed at promoting fair billing practices.
In response to NERC’s enforcement action, AEDC is mandated to reimburse all customers in Bands B, C, D, and E who were billed above the allowed customer categories/tariff bands provided in the Order.
Additionally, AEDC must reimburse affected customers through the provision of balance customer tokens at applicable rates, with all reimbursements to be issued by April 11, 2024.
Furthermore, AEDC is required to file evidence of compliance with the directives by April 12, 2024.
The newly announced electricity tariff has generated a lot of backlash from many corners of the country, with many decrying it as oppressive and insensitive, given the current poor economic situation of the Nigerian people.
The primary issue revolves around the inadequate power generation of the nation, currently at approximately 4,000MW, which falls significantly short of meeting the demand for a stable electricity supply to consumers. Against this backdrop, consumers in Band A are worried that they might not receive the service they are paying for.