Abuja DisCo fined N200 million for wrongfully billing customers after electricity tariff hike

The Abuja electricity distribution company (Abuja DisCo) has been hit with a N200 million fine by the Nigerian Electricity Regulatory Commission (NERC) after it was discovered the company has overbilled its customers. 

This was revealed in a circular from the management of the NERC in which the commission accused the Abuja Disco of refusing to comply with the prescribed customer band classifications for the tariff billing.

The commission also noted that following a detailed assessment, the Abuja Disco did not adhere to fair billing practices by applying the new tariff indiscriminately across all customer categories instead of just those in Band A.

“AEDC has been fined N200,000,000 (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,” the circular said.

This development is coming days after the commission announced an electricity tariff increase for customers in the Band A category. According to the announcement, Band A customers would henceforth pay N225 per kilowatt hour (kWh). 

However, it appears Abuja Disco also applied the new rates to certain customers, who did not fall into the affected category. 

The Disco would later apologise, stating that it was aware of the wrong charges faced by some Band A customers who tried to recharge their meters following the new tariff regime.

The Dosco attributed it to a system glitch caused by the reclassification of some Band A customers who have now been downgraded to Band B due to the number of hours of electricity supply enjoyed over the past few weeks. 

“These erstwhile Band A customers who vended were charged the new tariff of N225 per Kilowatt Hour. Our team is working to identify the customers affected and all excess charges will be refunded,” the Disco explained.

The apology, however, didn’t stop the NERC from wielding the hammer.

Abuja Disco ordered to refund customers under Band B to E

The NERC also ordered the Abuja Disco to reimburse all customers under Band B to E who were wrongfully charged the new electricity bill tariff. The commission also ordered that this reimbursement must be done through the provision of the balance of customer tokens that the affected customers would be entitled to receive.

The NERC further ordered that the reimbursement must be completed no later than 11 April 2024.

“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,” the NERC’s circular stated.

The Commission noted that its action against Abuja Disco underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity.

See also: All you need to know about NERC’s Power Outage Reporting app