NERC Gives Ikeja Electric, 10 Other DisCos Deadline to Refund Customers as New Tariff Starts

• The Nigerian Electricity Regulatory Commission (NERC) has directed the 11 electricity distribution companies in Nigeria a deadline to refund customers
• The directive gave the companies until April 11 to make the refund via energy tokens and provide proof to the Commission
• The development follows a fine of N500 million slammed on Abuja Electricity Distribution Company for wrongful billing

The Nigerian Electricity Regulatory Commission (NERC) has given the 11 electricity distribution companies (DisCos) till April 11, 2024, to refund customers who were wrongly billed at the new rate.

The statement was in a document signed by Abba Terab, NERC’s DGM, Market Competition and Rates.

Electricity consumers to get new energy tokens

NERC said the refund should be via energy units by April 11 and show evidence of compliance with the Commission by April 12, 2024.

Daily Trust reports that NERC also directed all the DisCos to clarify enough to all affected customers.

NERC said:

“The DisCos are hereby directed to implement the following updates: “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 vending to prepaid customers and billing for postpaid customers on their networks.

“All DisCos are required to immediately post on their websites the schedule of approved Band A feeders affected by the rate review.

FG slams Abuja DisCo with N200 million fine

The development comes as the Commission imposed a penalty of N200 million on Abuja Electricity Distribution Plc (AEDC) for disregarding its tariff regulations.

This sanction follows the Supplementary Order to the Multi-Year Tariff Order for 2024, issued on April 3, 2024, highlighting AEDC’s failure to comply.

It would be recalled that on April 3, NERC approved an increase in electricity tariff for Band A customers, stating that customers who receive 20 hours of electricity supply daily will pay N225 per kilowatt (kW) instead of the previous N66, starting from April 3.

According to a detailed communication disclosed by NERC, AEDC incorrectly implemented an authorised tariff increase across all customer categories, disregarding the specific instruction that only customers in Band A were to be affected by the rate adjustment.

This error has resulted in unjustified customer charges in Bands B to E. It has raised concerns about the operational adherence and fairness standards one of the nation’s prominent electricity distribution companies upholds.

FCCPC tells NERC to metre consumers in 60 days

According to a recent statement signed by Dr Adamu Abdullahi, the organisation’s acting executive vice chairman and chief executive officer, the Federal Competition and Consumer Protection Commission (FCCPC) has supported this action.

Additionally, the FCCPC demanded that NERC order all DisCoS to meter every electrical customer within 60 days.