By Ali Elias
The Nigerian Electricity Regulatory Commission (NERC) has sanctioned Abuja Electricity Distribution Company (AEDC) and imposed a heavy fine of N200m for violating the regulatory agency’s tariff order.
This was revealed in a Press Statement by the agency on Its X handle. The full details of the Statement read:
The Nigerian Electricity Regulatory Commission (“Commission”) has taken enforcement action against the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). 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.
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.
AEDC is therefore mandated to:
Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.
Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.
Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.
File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.
The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
The action of the agency has received a wide commendation by electricity consumers and well meaning Nigerians on the Social media platform, X.
One comment reads, “Nigerian rising” This user is perhaps hinting at regulatory compliance monitoring and its relevance in correcting Nigeria’s many ills.
Another user commented, “All discos are guilty of this, and more stringent actions should be taken against them. I hope they comply”.
“Please check what is happening in Enugu. Areas without 10 hours light are Considered Band A.” a user under Enugu Disco calls on NERC; while one from Ilorin wrote @NERCNG should look at the billing being done by @IBEDC_NG in Ilorin. Most of the areas categorised under Band A do not get supply for up to 10hrs daily. Many areas under Challenge were also recently upgraded to Band A without ‘upgrading’ their power supply. @InsideIlorin_NG
“Get ready to scrutinise @Kadunaelectric “ a user under Kaduna DISCO tells NERC, adding “ because some areas on this list in Sokoto hardly see electricity for more than 6 hours in 24 hours in the last 2 months but they are on Band A. Sama road hasn’t had one hour light throughout today but they are Banded as A.”
And yet another, “Very commendable from NERC. We need you to do more.”
Most of the comments, now into thousands, were either commending NERC for this bold step, or highlighting the unwholesome practices of the distribution companies (DISCOs) and urging NERC to do more in terms of continuous monitoring and enforcement of their regulations while ensuring compliance.
A few of the comments however compared the approved rate of N225 per Kwh with what obtains in South Africa, USA, Australia and feel the amount is excessive viewed against the background of our minimum wage and what it is in those countries.
“EKEDC is also guilty of this. They’ve moved certain areas to Band A because of this policy. No residential consumer should be paying this new tariff, it is criminal. We cannot be paying more for electricity than the US and European countries in Nigeria. This cannot stand!” this is from a user under Eko DISCO.”
Meanwhile, NERC has given further directive to electricity distribution companies (DISCOs) on implementation of the April 2024 supplementary multi-year tariff order, “to provide as much clarity as possible to all affected customers” under their operation.
“The DisCos” the Statement further adds, “are hereby directed to implement the following updates:
1. All DisCos shall ensure that ONLY the newly approved Band A feeders listed in their April 2024 supplementary orders are maintained as band A for the purpose of vending to prepaid customers and billing for post paid customers on their networks.
2. All DisCos are required to immediately post on their websites the schedule of approved Band A feeders that have been affected by the rate review.
3. All DisCos shall set up a portal by 10th April 2024 on their website that allows all customers to check their current Bands by entering their meter or account numbers.
4. All customers wrongly billed at the new rate should be refunded through energy tokens no later than Thursday 11th April 2024, and file evidence of compliance with the Commission by 12th April 2024.
5. The Commission shall monitor compliance with the requirements listed above and shall continue to provide support to all stakeholders as required” the statement concluded.
While the action of NERC is noteworthy, there are still some gray areas and questions that NERC has to sort out. One of them is, “What happens when power supply falls below 20 hours in a day for some days, in an area under band A? Also, Is the classification assuming a continuous power supply every day for at least 20 hours a day, or 20 hours any day there is light in the area?
This has to be addressed now; because it is hardly thinkable that power supply can be consistently maintained at the band A level all the time. Not minding any shortfall, the electricity companies would continue to charge the same rate even though they have not been delivering according to the regulatory stipulations.
To make sure this does not happen, it is suggested that the adjustment should be made at the meter level. In other words, the meter should be able to automatically calculate the number of hours power was supplied to an area and adjust the billing/ charge accordingly. What that means is that the meter should be able to switch between bands automatically. This may take time to achieve, but perhaps would arrive at some fairness and correct charge, not only for those in band A, but other bands as well.