Sunday May 11, 2025 |
The Nigerian Electricity Regulatory Commission, NERC, has ordered nine electricity Distribution Companies to compensate Band A customers living in 557 streets across its franchise areas for failing to meet the minimum power supply requirement mandated under the new electricity tariff regime.
Band A customer refers to a category of electricity consumers who receive at least 20 hours of electricity supply per day, as the highest electricity tariffs.
According to NERC, the affected DisCos must implement the compensation across 152 electricity feeders for poor supply in the month of April.
The compensation is to be implemented through either electricity credit or improved power supply, as stated in the April 2025 Multi-Year Tariff Order released by the regulatory agency and analysed by our correspondent on Saturday.
DisCos affected by the directive include Abuja Electricity Distribution Company, Eko Electricity Distribution Company, Port Harcourt Electricity Distribution Company, Kano Electricity Distribution Company, Kaduna Electricity Distribution Company, Ikeja Electric, Ibadan Electricity Distribution Company, and Benin Electricity Distribution Company.
Enugu Electricity Distribution Company is also listed among those required to upgrade the power supply to some areas.
The development comes exactly one year after NERC approved a controversial tariff hike of over 300 per cent for Band A customers, mandating a minimum daily power supply of 20 hours.
Despite the increase and a significant expansion of the Band A customer base, consumers have continued to lament poor service delivery, with many households and businesses struggling with erratic power supply, increased production costs, and dwindling disposable income.
In the MYTO, NERC said, “Pursuant to the provisions of the order on migration of customers and compensation for service failure under the service-based tariff framework (“Order on Migration”) and the directive to electricity distribution companies on band a feeder performance monitoring, upgrade and downgrade (“Directive for Operationalisation of Band A Feeders”), the commission, based on the feeder performance report for March 1, 2025, hereby orders as follows.
“AEDC shall make appropriate compensation to the affected customers in Band A feeders listed in Appendix 3 for failure to deliver up to 20 hours of average supply, but more than 18 hours of average supply, in line with the provisions of the Order on Migration while the feeders shall remain as Band A.
“AEDC shall downgrade the Band A feeder listed in Appendix 2 to the commensurate level of supply and make appropriate compensation to the affected customers in line with the provisions of the Order on Migration.”
A breakdown of the order showed that EKEDC has the highest number of affected streets, with compensation to be made to customers in 155 streets served by 57 feeders.
AEDC is expected to compensate consumers on 74 streets across 20 feeders.
Some of the areas to receive compensation include Army resettlement, Papal Ground, Aso Garden, Nydren supermarket, NERC headquarters, Sahad Super Stores, CBN Headquarters, Bassan Plaza, Reiz Continental, Nalado, National War College, the Chinese Embassy, and the entire Area One and Two.
Other areas include the Nigerian Identity Management Commission, the Defence headquarters, Works and Housing, and Nicon Luxury.
While PHED is to cover 131 streets on 22 feeders, IE is expected to compensate 105 streets on 25 feeders; IBEDC, 59 streets on 14 feeders; BEDC, 14 streets on four feeders; KEDCO, two streets on two feeders; and KAEDC, three streets on one feeder.
In addition to compensation, NERC also directed that 58 streets on 15 feeders be downgraded from Band A due to consistently poor power supply.
On the other hand, 33 streets on 15 feeders were upgraded to Band A due to improved service in those areas.
Disaggregated data shows that AEDC will downgrade 26 streets on three feeders, a move that could result in potential revenue loss.
EKEDC will downgrade two streets on one feeder; EEDC, two streets on one feeder; KEDCO, two streets on two feeders; KAEDC, six streets on three feeders; IE, one street on one feeder; IBEDC, nine streets on two feeders; and BEDC, 10 streets on two feeders.
Meanwhile, EEDC was authorised to upgrade 21 streets on eight feeders, Yola Electricity Distribution Company six streets on five feeders, and Jos Electricity Distribution Company six streets on five feeders.
