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Tag: AEDC

  • Tribunal orders AEDC to pay N5.3bn tax liability for 4 years 

    Tribunal orders AEDC to pay N5.3bn tax liability for 4 years 

    The Tax Appeal Tribunal (TAT) sitting in Abuja, on Thursday, ordered the Abuja Electricity Distribution Company (AEDC) Ltd to pay the cumulative sum of N5.3 billion as value added tax (VAT) and withholding tax liability for the period between 2013 and 2017.

    The five tax appeal commissioners, chaired by Hon. Alice Iriogbe in a judgment, held that the assessment of the  VAT made by the Federal Inland Revenue Service (FIRS) on the company was valid and in accordance with the Value Added Tax Act (VATA).

    The appellant, AEDC, had, in the appeal marked: TAT/ABJ/330/2024, sued the FIRS as sole respondent.

    The FIRS, in conjunction with the Economic and Financial Crimes Commission (EFCC), had, in 2018, conducted a tax investigation on the appellant for the 2013-2017 years of assessment (YOA).

    At the end of the investigation, a tax liability of N20, 163,668,697.00 (twenty billion, one hundred and sixty-three million, six hundred and sixty eight thousand, six hundred and ninety seven naira only) was established against the company.

    The FIRS, therefore, conveyed the liability for the period to the AEDC vide a letter dated Sept. 21, 2018 but KPMG, on behalf of the company, was said to have objected to the assessments through a letter dated Nov. 1, 2018.

    The company on Nov. 20, 2019, also appointed a consortium: Messrs Ascension Consulting Services Consortium authorised to reconcile its VAT matters in the ongoing tax investigation with the FIRS and EFCC.

    In the said letter, it was stated that the reason for the appointment was because they handled the compliance aspect of the work and now “expressly authorised to discuss and conclude the matter.”

    The tribunal, however, observed that during the oral testimony of the AEDC’s witness, Mr Martins Aroge, it was clear that KPMG (another tax consultant) was mandated to reconcile the appellant’s Withholding Tax (WHT) liability matters.

    The FIRS, while giving its evidence, argued that the appellant, through its agents; Ascension Consulting Consortium and KPMG, held several reconciliation meetings with the respondent (FIRS) and came up with N4, 534,358,874.00 revised computations as their own reconciled liabilities for the company and N780, 307,078.00 as withholding tax (totalling N5, 314, 665, 952) through two letters dated March 24, 2021 and Sept. 10, 2021.

    But the AEDC, dissatisfied with the assessment contained in the FIRS’ Notice of Refusal to Amend (NORA) dated Feb. 24, 2022, appealed against the federal agency’s decision.

    Giving a three-ground of appeal, the electricity firm said the FIRS was wrong to have assessed the tax on the basis of an unauthorised representation by its agent and to have issued a VAT assessment of over N4.53 billion on the basis of a purported letter, instead of relying on the legal basis of the VAT Act, among others.

    Delivering the judgement, the five-member panel held that the AEDC was bound by the action of its agents; Ascension Consulting Services Consortium (comprising of Ascension Consulting Services, TBS Professional Services and The Eminent Konsult) appointed to act on its behalf for reconciliation of VAT in respect of the tax investigation/reconciliation exercise.

    “This honourable tribunal, therefore, compels the appellant to pay N4,534,358,874.00 (four billion, five hundred and thirty -four million, three hundred and fifty -eight thousand, eight hundred and seventy — four naira) only as VAT liability for 2013 – 2017 as contained in the Notice of Refusal to Amend (NORA) to the respondent (FIRS) forthwith.

    “This honourable tribunal compels the appellant to pay the sum N780,307,078.00 (seven hundred and eighty million, three hundred and seventy-eight naira) only as withholding tax (WHT) liability for 2013 and 2016 as established by its consultant KPMG,” it ordered.

    The tribunal also compelled AEDC to pay the sum of N100.000 pending cost awarded in favour of the FIRS in the course of the proceeding.

    According to the tribunal, the appellant is also liable to interest on the judgement sum at the prevailing CBN rediscount rate from the date of judgement until the judgement debt is liquidated.

    “This is the judgement of this honourable tribunal,” it declared.

    NAN reports that other members of the tribunal include Hon Ishola Akintoye, Hon Ajayi Julius-Bamidele, Hon Nasir Kuliya and Hon Almustapha Aliyu

     

  • AEDC explains reason for throwing Abuja into darkness

    AEDC explains reason for throwing Abuja into darkness

    The Abuja Electricity Distribution Company (AEDC) has explained the reason behind the current blackout being suffered in the Federal Capital Territory (FCT) and all of its franchise areas.

    TheNewsGuru.com (TNG) reports AEDC attributes the power outage to the two-day warning strike of the Nigeria Labour Congress (NLC).

    Recall that NLC in a communique at the end of its National Executive Council said it would commence a two-day nationwide warning strike from Sept. 5 to Sept. 6. The strike has grounded activities in the country.

    The management of AEDC in a statement in Abuja on Tuesday disclosed that engagements with key stakeholders are ongoing toward minimising the impact of the strike.

    ”We are aware of the general power outage being experienced across our franchise,  this is due to enforcement  of the two-day warning strike embarked upon by the labour union.

    ”We apologise for any inconvenience you may be experiencing as a result of this, as we continue our engagement with key stakeholders toward minimising the impact of the strike on our customers,” it stated.

    AEDC urge their customers to take necessary precautions to manage the outage effectively.

    The company advised its customer to unplug sensitive electronic devices and appliances from power sources pending the restoration of power.

    ”We will continue to provide updates on developments regarding the impact of the strike action on our operations through our official social media handles.

    ”Thank you for your understanding and continued support during this challenging time. We remain committed to serve you,” it said.

  • AEDC gets new managing director

    AEDC gets new managing director

    The Abuja Electricity Distribution Company(AEDC) has announced  Mr. Christopher Ezeafulukwe as its new Managing Director (MD)/Chief Executive Officer.

    AEDC’s Chief Marketing Officer, Mr Donald Etim, in a statement in Abuja on Saturday said that the new managing director assumed duty on Friday.

    Etim said that the Board of AEDC appointed Ezeafulukwe as the  MD following the acquisition of 60 per cent stake in the company by Transcorp-led investors.

    He said that Ezeafulukwe while taking over from the outgoing MD  Mr Adeoye Fadeyibi  expressed commitment to take AEDC to its rightful position in the country’s power sector.

    The AEDC boss also promised to  improve the performance of the company as it relates to its customers and other stakeholders.

  • Why electricity consumers must pay their bills promptly – AEDC

    Why electricity consumers must pay their bills promptly – AEDC

    The Niger Region, Abuja Electricity Distribution Company (AEDC) says, electricity consumers in the area must pay their bills promptly to enable the company improve energy supply to serve them better.

    Mr Adamu Mohammed, the Public Relations Officer (PRO) of AEDC, Niger region, comprising of Minna, Bosso, Bida and Kontagora, made the appeal in Minna on Friday, during an interview with NAN.

    “You see, many of the electricity consumers see electricity as a privilege, but it is not so because we have gone fully commercial.

    “We have been using the media to sensitise the public on why they must pay their electricity bills promptly to enable us improve energy supply and serve them better.

    “The AEDC purchases the energy it distributes to consumers in Niger region at the rate of₦1.5 billion per month.

    “Right now power supply has improved, but our average collection per month remains at ₦400 million,” he said.

    Mohammed who decried the situation said that it was a bad signal for the company as no business would survive under the current condition.

    He noted that there were challenges in the energy value chain, starting from generation, transmission and distribution, adding that AEDC was doing everything to ensure improved power supply in the area.

    Mohammed said that in 2022, the company spent over ₦500 million to change and rehabilitate some equipment to improve power supply.

    The PRO said that when electricity consumers pay their bills promptly, it would enable the company to continue to improve power supply to boost socioeconomic activities.

    He stressed the need for the electricity consumers to purchase the pre-paid metres, to prevent over billing or under-billing against the company.

    “The direct billing (estimated billing) is always characterised with over-billing or under-billing, resulting in face-off between the customer and the company.

    “Anywhere we are dealing with the customers directly, it is either the customer is cheating the company or the company is cheating the customer,” he said.

    Mohammed said that there was an ongoing Metre Access Provider (MAP) exercise, to ensure that electricity consumers purchase their pre-paid metres and reimbursed through Energy Token by the AEDC.

    “Right now the AEDC has pre-paid metres available for sale now in Niger region, so we want customers to come and buy their metres.

    “Federal Government has given the AEDC 10 years to reimburse electricity consumers who purchased their pre-paid metres.

    “Infact the AEDC has started paying back customers who purchased their own pre-paid metres through Energy Token,” he said.

    He advised the public to report any electricity fault or complaint to any AEDC office near them for better service delivery.

    The PRO also called on the public to help the company in securing electricity equipment near them, by reporting vandals to the security agencies or any AEDC office near them.

    Also speaking, Alhaji Haruna Aliyu, a resident of Minna said that recently power supply had improved, but for paucity of funds by consumers to pay.

    Aliyu blamed the situation on the current economic downturn being experienced in the country.

  • AEDC reverses proposed electricity tariff hike

    AEDC reverses proposed electricity tariff hike

    The Abuja Electricity Distribution Company (AEDC) has appealed to its customers to disregard planned tariff increase as approval for such increment had not been received.

    AEDC management made the appeal in a statement on Monday in Abuja.

    “Please disregard the circulating communication, regarding review of electricity tariffs.

    “Be informed that no approval for such increments has been received. We regret any inconvenience.”

    However, AEDC had earlier in a statement, said there would be an upward review of electricity tariff from July 1.

    According to the statement, the tariff increase is influenced by the fluctuating exchange rate.

    “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

    “Under the MYTO 2022 guidelines, the previously set exchange rate of N441/1 dollar may now be revised to approximately N750/1 dollar which will have an impact on the tariffs associated with your electricity consumption.

    “For customers within band B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per Kilowatts per hour (KWh).

    “ While Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs, ‘’it said.

    AEDC encouraged customers with prepaid meters to consider purchasing bulk energy units before the end of June as this would allow them take advantage of the current rates and   make savings before the new tariffs came into effect.

    AEDC said that for those on post-paid (estimated) billing, a significant increment is imminent in their monthly billing, starting from August.

    The Mult Year Tariff Order (MYTO) is the methodology for regulating electricity prices.

    It provided a 15-year tariff path for the Nigerian electricity industry with limited ‘minor’ reviews each year in the light of changes in a number of parameters.

    These included inflation and gas prices and ‘major’ reviews every five years when all of the inputs were reviewed with stakeholders.

  • AEDC notifies customers of tariff increase from July

    AEDC notifies customers of tariff increase from July

    The Abuja Electricity Distribution Company (AEDC) has started informing customers in its franchise area that there will be an upward review of electricity tariff from July 1.

    According to a statement issued by the company’s management on Monday, the tariff increase is influenced by the fluctuating exchange rate.

    “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

    “Under the MYTO 2022 guidelines, the previously set exchange rate of N441/1 dollar may now be revised to approximately N750/1 dollar which will have an impact on the tariffs associated with your electricity consumption.

    “For customers within band B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per Kilowatts per hour (KWh).

    “While Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs,” he said.

    AEDC encouraged customers with a prepaid meter to consider purchasing bulk energy units before the end of June as this will allow them take advantage of the current rates  make savings before the new tariffs come into effect.

    AEDC said that for those on post-paid (estimated) billing, a significant increment is imminent in their monthly billing, starting from August.

    The Mult Year Tariff Order (MYTO) is the methodology for regulating electricity prices.

    It provides a 15-year tariff path for the Nigerian electricity industry with limited ‘minor’ reviews each year in the light of changes in a number of parameters.

    The perimeters include inflation and gas prices and ‘major’ reviews every five years when all of the inputs are reviewed with stakeholders.

  • AEDC reveals electricity customers owe N22bn in Kogi

    AEDC reveals electricity customers owe N22bn in Kogi

    Abuja Electricity Distribution Company (AEDC), Kogi Regional office  has said that over N22 billion worth of energy is being owed electricity consumers in the state.

    The Regional Manager, AEDC, Mr Danladi Baba, disclosed this in an interview on Saturday in Lokoja.

    According to him, the  customers as whole is owing AEDC over N22 billion worth of debt, and every month we add value to our debt.

    He said the state government alone was owing N483 million as at April 2023, while other debts were from private individuals, companies and other customers.

    “For the past four months in Kogi, we import energy of nothing less than N1 billion but we hardly get N500 million in average every month from our customers.

    “The highest we have gotten in a month is N543 million and sometimes it dropped below N500 million.

    “We encourage our customers to pay their electricity supply debt to avoid the AEDC from being disconnected from the National Grid,” Baba said.

    The Regional manager stressed that regular payment of electricity bills and outstanding debt would lead to improved electricity supply for customers to enjoy.

    He explained that some Electricity Distribution Companies (DisCos), who could not fulfill the obligation of the market, were recently disconnected by Transmission Company of Nigeria (TCN) from the National Grid.

    This, he said was because of their inability to pay for what they imported as energy.

    “The obligation of the market is that you must meet up with the payment for the energy that you are taking.

    “Thank God the AEDC is not part of those Discos that were disconnected, and that is why we are appealing to our customers to pay up their accumulated bills.

    “If care is not taken the disconnection by TCN from the grid can affect AEDC also,” Baba said.

    He, however noted that the drop in the electricity supply in March and April was due to the shortfall in the allocation given to them by TCN from the National Grid.

    “We can only dispense to our customers what is being allocated to us. We hope for improvement in the allocation very soon.

    “But if you compared Kogi to other AEDC Regions as well as other Discos in terms of Megawatts intake, Kogi has improved electricity supply than Nasarrawa and even part of FCT.

    “The improvement has started from the beginning of this month of May, and we will continue to improve.

    “As from May, almost all our Feeders take 16 hours supply of electricity till this moment, while customers on Band A get over 20 hours supply daily,” Baba said.

    He noted that Prepaid Meters were available through only one access window called, “Meter Access Provider (MAP)” where customers pay with their money and get the meters unlike before when they were doing Mass Metering giving it out free of charge.

    According to him, a single phase meter goes for N63,100, while that of double phase is N118,000 aside the managing director categories, which is N500,000 and above depending on the rating.

    He,  gave the assurance that the Federal Government and the Central Bank of Nigeria (CBN) are in collaborative efforts to provide over 100 million Prepaid meters to customers free of charge.

  • AEDC alerts customers of power interruption in parts of Abuja

    AEDC alerts customers of power interruption in parts of Abuja

    The Abuja Electricity Distribution Company (AEDC), has notified its customers residing along Apo/Gudu, Abuja, that there will be an annual preventive maintenance at the Gudu Injection Substation.

    The management of AEDC, in a statement in Abuja on Monday, said that the maintenance would take place on March 14, from 10 a.m. to 2 p.m.

    The company said that during this period, there would be power interruptions which would affect Prince & Princess Estate, Parts of Kaura District, Dubai Market, Behind Games Village, and Part of Durumi 2, Adisa Estate.

    AEDC listed other areas to include Sharia Court of Appeal, Federal Boys College, Sharon Plaza, Anon Plaza, Cedar Crest Hospital, MKK Plaza, Durumi 3 Shell Estate, A.A. Shafa Filling Station, Amina Court, NPI Estate, and environs.

    ”While we regret the inconvenience, we would like to assure our valued customers that the exercise is expected to ensure improved power supply to these areas.

  • NERC silent as electricity distribution companies hike tariffs

    NERC silent as electricity distribution companies hike tariffs

    The Nigerian Electricity Regulatory Commission (NERC) has remained silent after it was confirmed that electricity distribution companies in the country have quietly hiked tariffs across their franchise areas.

    TheNewsGuru.com (TNG) confirms the increase in electricity tariffs on Wednesday but calls put through to NERC’s Commissioner-in-charge of Consumers Affairs, Aisha Mahmud were not answered.

    NERC spokesman, Usman Arabi also neither picked up his calls nor responded to inquiries on the increase.

    The tariff hike was first observed on the Tariff Band A Non-MD, which increased from N57.55 per unit it was in December 2022 to N68.2 per unit in January 2023.

    Though the NERC had not released an official statement on the matter, the Abuja Electricity Distribution Company (AEDC) confirmed the tariff increase in a tweet the electricity distribution company has deleted.

    But on its website, the electricity regulatory authority explained that one of its primary functions as contained in Section 32 (d) of the Electric Power Sector Reform Act, 2005 was to ensure that the prices charged by licencees were fair to customers and sufficient to allow the licencees to finance their activities and obtain reasonable profit for efficient operations.

    “In pursuant to the authority given under Section 76 of the EPSR Act 2005, the commission established a methodology for determining electricity tariff in the Nigerian Electricity Supply Industry and subsequently issued a tariff order called the Multi-Year Tariff Order that sets out tariffs for the generation, transmission and distribution of electricity in Nigeria.

    “The purpose of the MYTO is to set cost-reflective tariffs which will allow the power sector to be properly funded and functional. It provides a 15-year tariff path for the NESI with limited minor reviews each year in the light of changes in a limited number of parameters (such as inflation, interest rates, exchange rates and generation capacity) and major reviews every five years, when all of the inputs are reviewed with the stakeholders,” NERC stated on its website.

    TNG reports the tariff increase that was first observed on the Tariff Band A Non-MD, which was increased from N57.55 per unit in December to N68.2 per unit, amounts to about a 19 per cent increase in tariffs.

    However, neither NERC nor the various electricity distribution companies, 10 in total, have made the current rates available for electricity consumers.

    Meanwhile, the Enugu Electricity Distribution Company (EEDC) in December confirmed a recent minor electricity tariff adjustment of about 13 per cent, which the company said was in reflection of economic realities meant to keep the electricity industry alive.

    EEDC had in December increased the tariff rate for Non-MD customers under R2SB class from N58.47 to N66.47 per kilowatt, which cuts across all categories of customers within the company’s network franchise area in the South-East.

    The Head, Corporate Communications of EEDC, Mr Emeka Ezeh had disclosed that the minor adjustment, which took effect from Dec. 1, 2022, was approved by the Nigerian Electricity Regulatory Commission (NERC) some months ago across all electricity distribution companies in the country.

    According to him, there is a minor adjustment by some percentage across board in the whole electricity distribution companies nationwide currently and it is not peculiar to EEDC alone.

    He said: “The minor increase in the rate of tariff approved by NERC is for Electricity Distribution Companies (DisCOs) to meet up with the current economic realities in the power/electricity sector.

    “Currently, the sector is seriously affected by the high inflationary rate in the country; as it affects our daily operational maintenance and services to our esteemed customers in our network.

    “The issue of high foreign exchange rate is affecting our business too in terms of importing most of our spare parts needed for daily maintenance and repairs in the network.

    “The high foreign exchange rate also impact on EEDC ever increasing investment on installations to further expand and fortify the network, leading to the improved services customers are experiencing within the South-East.”

    The EEDC spokesman appealed for the understanding of its esteemed customers, adding that if the indices mentioned and other factors “turn positive tomorrow; we belief that NERC will review the tariff downwards”.

    “The recent development is for us to remain in business, service our customers better and maintain obligations to other stakeholders within the sector/industry,” he added.

    However, customers within EEDC network in Enugu have continued to complain that the increase is already tightening the existing economic hardship.

    They were of the view that before now, the high inflationary rate of about 22 per cent, according to the National Bureau of Statistics (NBS), was even affecting how their families feed daily.

    Mr Obinna Nwafor, a resident of Achara layout in Enugu, noted that it was terrible that the residents cannot get any economic respite; “as there are so many struggles to survive in the country”.

    Nwafor said: “I wish this increase has not come now; so that at least we can have a sector that is relatively stable and not being affected by the nationwide inflationary trend”.

    Mr Jude Onyia, a resident of Uwani axis of Enugu metropolis, urged EEDC to consider those in the lower categories of their tariff line and exclude them from the increase.

    “It is clear that those of us in the low category of the tariff cannot easily meet up and other alternatives to electricity are quite costly too,” Onyia said.

  • BREAKING: NERC quietly approves increase in cost of electricity

    BREAKING: NERC quietly approves increase in cost of electricity

    The Nigerian Electricity Regulatory Commission (NERC) has quietly ordered electricity distribution companies to increase the cost of electricity across their franchise areas.

    TheNewsGuru.com (TNG) reports the Abuja Electricity Distribution Company (AEDC) confirmed the development on Wednesday.

    The tariff increase was first observed on the Tariff Band A Non MD, which was increased from N57.55 per unit in December to N68.2 per unit.

    When contacted, AEDC stated: “Good day, please be informed that the increase in Tariff is in compliance with NERC order”.

    BREAKING: NERC quietly orders increase in cost of electricity

     

    Meanwhile, neither the NERC nor the electricity distribution companies have released an official statement on the matter.