NERC Orders 9 DisCos to Compensate Band A Customers for Inadequate Power Supply

• NERC has ordered compensation for Band A customers in 557 streets across nine DisCos due to their failure to meet the required 20 hours of daily power supply
• The affected DisCos must compensate customers through electricity credits or improved supply, with EKEDC having the most affected streets
• Despite a 300% tariff increase in 2024, many consumers continue to experience dissatisfaction with the service, as issues with power reliability persist

The Nigerian Electricity Regulatory Commission (NERC) has ordered compensation for electricity customers on Band A in 557 streets across nine Distribution Companies (DisCos).

This follows the failure of these DisCos to meet the required minimum power supply of 20 hours per day for Band A customers, who are subject to the highest electricity tariffs.

In 2024, the Nigerian Electricity Regulatory Commission (NERC) approved a 300% tariff increase for Band A customers, mandating at least 20 hours of daily power supply.

However, despite this significant change and a large increase in the number of Band A customers, many consumers are still dissatisfied with the service, continuing to report issues with unreliable power supply.

Compensation for Band A customers

The affected DisCos include Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKEDC), and Kano Electricity Distribution Company (KEDCO).

Others are Ikeja Electric, Ibadan Electricity Distribution Company (IBEDC), Port Harcourt Electricity Distribution Company (PHED), Kaduna Electricity Distribution Company (KEDC), and Benin Electricity Distribution Company (BEDC).

According to Punch, NERC had instructed these companies to compensate affected customers through electricity credits or improved power supply.

Recall that recently, eight DisCos were fined a total of N628.03 million by NERC for failing to comply with the cap on anticipated billing for unmetered customers.

Details of the NERC directive

Under the Multi-Year Tariff Order (MYTO), AEDC is expected to compensate customers in Band A feeders who received less than 20 hours but more than 18 hours of power supply.

The report stated:

“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."

EKEDC is required to compensate customers in 155 streets across 57 feeders, marking the highest number of affected streets.

In addition, Enugu Electricity Distribution Company is required to improve power supply in certain areas.

PHED is required to compensate customers in 131 streets across 22 feeders, while IE must provide compensation for 105 streets served by 25 feeders.

IBEDC will compensate customers in 59 streets on 14 feeders, BEDC in 14 streets across four feeders, KEDCO in two streets on two feeders, and KAEDC in three streets served by one feeder.

Some of the areas to receive compensation include Army resettlement, Papal Ground, Aso Garden, Nydren supermarket, NERC headquarters, Sahad Super Stores, Nalado, National War College, the Chinese Embassy, and the entire Area One and Two.

Other areas include the Defence headquarters, Nigerian Identity Management Commission, CBN Headquarters, Bassan Plaza, Reiz Continental, and Nicon Luxury.

Downgrade from and upgrade to Band A

In addition to compensation, NERC had instructed that 58 streets across 15 feeders be downgraded from Band A due to consistently poor power supply.

Conversely, 33 streets across 15 feeders were upgraded to Band A following improvements in service.

The breakdown shows that AEDC will downgrade 26 streets on three feeders, potentially leading to revenue loss.

EKEDC will downgrade two streets on one feeder, EEDC will downgrade two streets on one feeder, KEDCO will downgrade two streets on two feeders, and KAEDC will downgrade six streets across three feeders.

Ikeja Electric (IE) will downgrade one street on one feeder, IBEDC will downgrade nine streets on two feeders, and BEDC will downgrade 10 streets on two feeders.

Also, EEDC has been authorised to upgrade 21 streets across eight feeders, Yola Electricity Distribution Company six streets across five feeders, and Jos Electricity Distribution Company six streets across five feeders.

Aba Power achieves uninterrupted power supply

Earlier, Legit.ng reported that Aba Power made history as the first electricity distribution company in Nigeria to provide a full month of uninterrupted power supply in recent times.

Engineer Cliff Eneh, a former senior manager at the now-defunct National Electric Power Authority (NEPA), praised Aba Power for maintaining consistent service since December 2024, despite Nigeria's power sector challenges.

The company managed to overcome issues like pipeline vandalism and even imported power from the Niger Delta Power Holding Company at a higher cost to ensure steady supply for its customers.

Source: Legit.ng