Transcorp’s Abuja energy Distribution Company (AEDC), a leading distribution company owned by Nigerian businessman Tony Elumelu, has been sanctioned by the Nigerian Electricity Regulatory Commission (NERC) for violating recently implemented energy prices in Nigeria’s capital.
AEDC, a subsidiary of Transcorp Power, the energy arm of diversified conglomerate Transnational Corporation of Nigeria Plc (Transcorp), chaired by Elumelu, faces fines for violating the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024.
NERC fined AEDC N200 million ($0.468 million) for incorrectly charging consumers outside Band A, who are excluded from the tariff hike, at higher rates. The commission has directed AEDC to refund affected customers and establish proper billing procedures. On April 3, NERC raised pricing for Band A customers that receive 20 hours of daily supply, but stressed that the change would not apply to Bands B, C, D, and E.
Following a recent price announcement, Nigerian residents in lower electricity consumption bands saw unexpectedly high rates when purchasing pre-paid units. The Abuja Electricity Distribution Company (AEDC) ascribed the problem on a “system glitch” caused by the migration of Band A subscribers to Band B during power outages. This instance underlines the ongoing issues of energy price revisions in Nigeria, where consumers experience intermittent power delivery amid rising costs.
On Friday, the Nigerian Electricity Regulatory Commission (NERC) published a statement saying, “This decision follows a comprehensive study and analysis of customer input, which demonstrated that AEDC had wrongly implemented the increased tariff to all customer bands. The Order was intended to enforce equitable billing practices.”
The statement went on to explain the refund process, saying, “AEDC will reimburse impacted consumers by distributing the balance of electricity tokens they are entitled to receive at the applicable prices. All token reimbursements must be distributed to affected clients by April 11, 2024.”
Elumelu’s leadership fuels Transcorp’s success.
Transcorp, a publicly traded Nigerian conglomerate with diverse holdings in the hospitality, electricity, oil, and gas industries, is centered on Transcorp electricity, its energy subsidiary. The company’s objective includes raising living standards, generating good change across Africa, and providing long-term value to its stockholders.
Tony Elumelu, a notable Nigerian businessman, has had a substantial impact on Transcorp’s financial performance. Elumelu’s investment firm, HH Capital, owns a hefty 29.5 percent holding in Transcorp, which translates to 11,990,957,350 ordinary shares.
