The Challenge of Tariff Hike: Disco defies NERC, neglects refund for wrongly billed customers

Following the mandate for an Electric Distribution Company (Disco) to reimburse customers who were incorrectly billed amidst the recent tariff increase, NewsNow reveals that the Disco remains unyielding.

The Disco had mistakenly applied the Band A electricity tariff hike to all customers, disregarding their designated bands.

After receiving complaints from Nigerians, the Disco issued an apology to its customers, attributing the error to a system malfunction.

Consequently, the Nigerian Electricity Regulatory Commission (NERC) imposed a N200 million penalty on the Disco for misinterpreting the approved tariff directive.

Alongside the fine, the Commission instructed the Disco to refund affected customers by April 11 and submit a report by April 12.

However, an examination by NewsNow reveals that the Disco has failed to refund all customers who were incorrectly billed despite the expiration of the deadline.

Several customers verified that they are still awaiting an energy token refund.

One customer, Ezekiel Umanah (meter no: 45862856286), residing in Dutse, Zone 6, disclosed that he has not received a refund from AEDC.

He was charged the Band A tariff instead of Band B when purchasing prepaid units on April 3, 2024.

Expressing his dismay, he informed NewsNow, “AEDC is yet to refund me. As a Band B customer, I purchased 50,000 electricity units for 206 kilo-watt-hours instead of over 500.”

“I believe several other customers are facing the same issue with AEDC. It is unacceptable if the government and regulatory Commission allow this to go unpunished,” he emphasized.

Another customer, Loveth Idugu (Meter No 45701255536), also mentioned that she has not received a refund from AEDC weeks after being incorrectly billed.

“On April 4, I paid N20,000 for 82.7kwh tariff instead of the 200kwh I usually purchased as a Band B customer,” she lamented.

Expressing confusion about obtaining a refund from AEDC, she questioned why NERC issued a directive that the Disco has not complied with. She perceived the situation as unfair to electricity customers under AEDC’s jurisdiction.

Meanwhile, Barr Dafe Akpeneye, the Commissioner of Legal, Licensing & Compliance at NERC, advised customers who were inaccurately billed by AEDC and have not received a refund to escalate the issue to the Commission for necessary action.

In response to inquiries by NewsNow, Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, affirmed that some customers incorrectly billed by AEDC were still awaiting refunds.

While acknowledging that some customers confirmed receiving refunds, Olubiyo decried the fact that electricity supply has become a luxury accessible only to the wealthy following the tariff hike.

He pointed out that customers in lower bands, who are entitled to 16 hours of power supply, now receive only 4-6 hours. This drastic reduction in supply affects customers across different bands.

Commenting on the situation, a retired staff member of the defunct Power Holding Company of Nigeria (PHCN), Ewetumo A. A, expressed his lack of surprise at AEDC’s misconduct.

He urged affected customers to adhere to the conflict resolution processes outlined in the 2023 Electricity Act.

For customers seeking an energy token refund, following the guidance of Ewetumo is crucial:

“We urge all affected AEDC customers to follow the Conflict Resolution procedures stipulated by NERC in the New Electricity Act.

“Initiate formal complaints through AEDC’s channels, whether physically at their offices or via Online Reporting Channels on the AEDC website, Facebook/Instagram, Twitter, or WhatsApp.

“Copy NERC and the Federal Competition and Consumer Protection Commission (FCCPC) Headquarters on all complaints. Exercise patience during the resolution process, which may vary in duration.

“After two weeks without a response from AEDC, send a formal Letter/Message of REMINDER, this time to AEDC-HQ Office of The MD/CEO, and also forward copies to NERC and FCCPC.

“If there is still no resolution after 28 days, file a formal complaint with the compliance desk at NERC-HQ in Abuja. Swift resolution can be expected from NERC-HQ,” he advised.

Expert Perspective

According to Wumi Iledare, Professor Emeritus and Executive Director of Emmanuel Egbogah Foundation, NERC must enforce penalties after the grace period to combat unethical business practices and safeguard consumer rights.

While acknowledging the inevitability of the tariff hike, Iledare suggested a progressive approach to ensure affordable electricity access for all.

He emphasized the importance of full metering for customers to promote fairness and reduce power theft, stressing the necessity for NERC to take decisive actions to uphold the law and protect consumers.

He also underscored the significance of investing in gas-to-power conversion and transmission infrastructure to guarantee a reasonable return on investment and enhance power availability.