The Nigerian Electricity Regulatory Commission (NERC) has instructed nine electricity Distribution Companies (DisCos) to compensate Band A customers residing on 557 streets within their service areas.
This action follows the DisCos’ failure to meet the minimum power supply requirements set by the new electricity tariff regime. Band A customers are defined as those who receive at least 20 hours of electricity supply daily and are subject to the highest electricity tariffs.
NERC has mandated that the affected DisCos provide compensation for inadequate service across 152 electricity feeders for the month of April. Compensation can be offered either as electricity credits or through enhanced power supply, as outlined in the April 2025 Multi-Year Tariff Order released by the regulatory body on Saturday.
The directive affects several electricity distribution companies, including 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 required to enhance power supply in certain areas.
This announcement comes exactly one year after the Nigerian Electricity Regulatory Commission (NERC) approved a controversial tariff increase of over 300% for Band A customers, which mandated a minimum daily power supply of 20 hours.
Despite this increase and a significant growth in the Band A customer base, consumers continue to express dissatisfaction with service delivery. Many households and businesses are facing challenges due to inconsistent power supply, rising production costs, and decreasing disposable income. In the Multi-Year Tariff Order (MYTO), NERC stated.
In accordance with the provisions outlined in the Order on Migration of Customers and Compensation for Service Failure under the service-based tariff framework (“Order on Migration”), as well as the directive for electricity distribution companies regarding the monitoring, upgrading, and downgrading of Band A feeder performance (“Directive for Operationalisation of Band A Feeders”), the commission issues the following orders based on the feeder performance report dated March 1, 2025:
1. AEDC is required to compensate the affected customers in Band A feeders listed in Appendix 3 for failing to provide an average supply of up to 20 hours, but exceeding 18 hours, in accordance with the Order on Migration. The feeders will continue to be classified as Band A.
2. AEDC must downgrade the Band A feeder listed in Appendix 2 to the appropriate supply level and provide compensation to the affected customers as stipulated in the Order on Migration.
An analysis of the order revealed that EKEDC has the largest number of impacted streets, with compensation planned for customers on 155 streets served by 57 feeders. Meanwhile, AEDC is set to compensate consumers on 74 streets across 20 feeders.
