The Nigerian Electricity Regulatory Commission (NERC) has approved a N26.4 billion subsidy for customers of the Abuja Electricity Distribution Company (AEDC), while leaving electricity tariffs unchanged in its September 2024 Supplementary Multi-Year Tariff Order (MYTO).
This decision was outlined in a document released by NERC recently.
According to the new MYTO, the tariffs for Band A customers will remain at N209/Kw/h, while the rates for Bands B to E will stay the same as they have been since December 2022.
NERC explained that the subsidy aligns with the federal government’s policy on electricity pricing, stating, “In line with the policy direction of the federal government on electricity subsidy, 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.”
The commission estimated that the subsidy benefit for AEDC customers in 2024 would total around N26.4 billion monthly.
Additionally, NERC imposed a N1.69 billion fine on AEDC due to its non-compliance with the capping of estimated billing. After reviewing customer petitions and AEDC’s data from January to September 2023, it was determined that AEDC had over-billed its customers by N16.9 billion during that period. As a result, the commission ordered that N1.69 billion be deducted from AEDC’s total operating expenses starting in September 2024.
This tariff order took effect since September 1, 2024, with future adjustments depending on government policies and regulatory reviews.
