AEDC Customers Set To Receive N26.4bn Subsidy From NERC

The September 2024 Supplementary Multi-Year Tariff Order (MYTO), which was announced by the Nigerian Electricity Regulatory Commission (NERC) on Friday, September 13, did not alter the rates.

The Band A Tariff stayed at N209/Kw/h, while the rates for Bands B through -E stayed the same as they had been since December 2022.

The payment of a N26.4 billion subsidy for subscribers of Abuja Electricity Distribution Company (AEDC), Plc, was approved by it nonetheless.

Its document, “Order/NERC/2024/114 in the Supplementary Multi-Year Tariff Order (MY TO) September 2024,” which it released yesterday, included this information.

“The allowed tariffs for Bands B-E customer categories shall remain frozen at the rates payable since December 2022 subject to further policy direction by the government,” stated NERC, in accordance with the federal government’s policy direction on electricity subsidies.

Customers under the Abuja Electricity Distribution Company (AEDC) franchise are expected to get a monthly subsidy benefit of over N26.4 billion under this strategy by 2024.

Because AEDC did not comply with the capping of anticipated bills, following petition hearings, and data analysis, NERC fined the company N1.69 billion.

“The commission has approved the deduction of N1.69 billion from the total OPEX of AEDC, effective from September 2024, being the 10% of the overbilled amount by AEDC for the period covering January to September 2024.

This is in accordance with the commission’s Order NERC/2024/114 on non-compliance with the capping of estimated bills and subsequent petition hearings and review of data further provided by AEDC.”

The fine demonstrates that between January and September 2023, AEDC overcharged its clients by N16.9 billion. The tariff went into force on September 1, 2024.