The Abuja Electricity Distribution Company Plc has recently come under fire for applying the new power tariff of N225/kWh to all customer bands under its franchise areas, despite the directive that only power users on Band A should pay the new rate. This move has resulted in the company being fined N200 million for violating the Nigerian Electricity Regulatory Commission’s Supplementary Order on the April 2024 Multi-Year Tariff Order.
The Federal Government’s approval of a 240 per cent hike in the tariff payable by approximately 1.9 million electricity users in Nigeria has sparked outrage among manufacturers and organized labor. The subsidy on electricity has been completely withdrawn from the tariffs payable by power consumers on Band A category, which make up about 15 per cent of the total 12.82 million power users across the country.
The government announced the tariff increase at a press briefing in Abuja, stating that affected customers would now pay a tariff of N225 per kilowatt-hour, up from the previous rate of N68/kWh. This decision, effective from April 3, 2024, was intended to only impact Band A customers, who receive up to 20 hours of electricity supply daily.
However, many customers of AEDC have raised concerns that they are not on Band A but have still seen their bills raised to N225/kWh. This discrepancy prompted NERC to intervene and take enforcement action against AEDC for non-compliance with the prescribed customer band classifications for tariff billing, resulting in a hefty fine.
In response to the situation, the power sector regulator emphasized its commitment to protecting consumer rights and ensuring fair practices within Nigeria’s electricity sector. It urged power users to report any similar incidents encountered with Discos to ensure appropriate action is taken.
This development highlights the ongoing challenges within the Nigerian electricity sector and the importance of regulatory oversight to safeguard consumer interests.
