NERC Orders Ikeja Electric, EKDC, IBDC, 5 Other DisCos to Downgrade 18 Band A Feeders to Lower Bands

• The Nigerian Electricity Regulatory Commission (NERC) has asked eight electricity distribution companies to downgrade 18 feeders to lower bands
• About eight electricity distribution firms are affected by the new directive from the electricity regulator
• NERC said the order came as the affected electricity companies failed to supply the mandatory minimum of 20 hours of power to the affected feeders

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Electricity Regulatory Commission (NERC) has ordered eight electricity distribution firms to downgrade 18 Band A feeders to lower bands because they are unable to supply a minimum of 20 hours of power to the affected customers.

The commission also ordered the DisCos to compensate Band A customers in 213 feeders.

Breakdown of the affected DisCos

The order was contained in the May 2025 Supplementary Order to the Multi-Year Tariff Order (MYTO).

According to reports, about eight DisCos are affected, including Abuja Electricity Distribution Company (AEDC), Enugu Electricity Distribution Company (EEDC), Eko Electricity Distribution Company (EKDC), Yola Electricity Distribution Company (YEDC), Ibadan Electricity Distribution Company (IBEDC), Ikeja Electricity Distribution Company (IE), Kaduna Electricity Distribution Company (KAEDCO) and Port Harcourt Electricity Distribution Company (PHEDC).

An analysis shows that EKDC has the largest number of feeders to be compensated, with 84 feeders.

Eko, Ikeja DisCos have the highest feeders 

Daily Trust reports that while the main reason was the DisCos’ inability to meet the 20-hour power supply demand, the Transmission Company of Nigeria (TCN) compensated 37 feeders for load shedding.

Ikeja Electric came next with 50 feeders to be compensated, as three were downgraded to lower bands.

However, the company has not received approval to upgrade eight feeders to higher bands.

Also, Enugu DisCo was directed to compensate customers on 15 feeders, with two feeders downgraded.

Kaduna DisCo has eight feeders to be downgraded, while Yola DisCo was asked to downgrade two feeders.

NERC orders DisCos to compensate customers

Legit.ng previously reported that NERC had ordered nine DisCos to compensate 152 electricity feeders for power supply in April.

The commission said the decision was made under the provisions of the Order on Migration of Customers and Compensation for Service Failure under the Service-Based Tariff Framework.

NERC said the framework said EKEDP shall compensate the affected customers in Band A feeders as listed in Appendix 2 for failure to deliver up to 20 hours of electricity, but more than 18 hours of average supply, according to the provisions of the Order on Migration.

NERC gives reasons for downgrade order

The orders also provided for the establishment of a Transmission Infrastructure Fund (TIF) to support funding of essential transmission infrastructure projects and new initiatives needed to facilitate improved service delivery in the NESI.

It disclosed that the fund would be managed and could also be used as collateral in financing and other public-private partnership (PPP) schemes for infrastructure funding in the transmission network.

NERC said:

“Accordingly, a provision of N2.17/kWh of energy delivered to the grid off-takers has been made as the contribution towards the build-up of the TIF in 2025.”

Dissatisfied Band A customers lament

Biola Oshonaike, a resident of Ketu, Lagos, told Legit.ng that he is billed under the Band A tariff, but the supply of power is not efficient.

He said:

"I pay for Band A electricity expecting stable power, but all I get is frequent outages and low voltage. NERC ordered an adequate supply, yet our DisCo fails to deliver. It’s frustrating to be billed fully for a service we barely receive. We deserve better."

Another electricity customer in the Ikeja area, Chibuzor Nwankwo, lamented the unfairness of being charged a high tariff and not getting the promised hours of power supply:

He said:

"Despite paying for Band A service, my electricity supply is erratic and unreliable. NERC’s directives are ignored by DisCos, leaving us in the dark most time. It’s unfair to consumers who follow the rules but suffer constant blackouts. Accountability from DisCos must improve immediately."

Esther Nsikak, who resides in the Ikotun area, seems to have lost hope in the ability of NERC to penalise DisCos who continue to provide poor service to Band A customers.

She said:

"I subscribed to Band A for consistent electricity, but the power supply is still inadequate. NERC’s order seems like a joke as DisCos continue to disappoint with poor service. We are tired of excuses and want reliable power as promised. This situation needs urgent intervention."

NERC fines DisCo for overbilling

Legit.ng earlier reported that Abuja Electricity Distribution Company (AEDC) has been fined ₦1.69 billion by the Nigerian Electricity Regulatory Commission for overcharging customers.

As per NERC's statement, the fine is due to AEDC's disregard for the commission's previous order restricting projected billing for power users.

The fine was specified in the official "Order NERC/2024/114" that the commission issued.

The article was updated by the head of the business desk, Victor Enengedi, with exclusive comments from a few Band A electricity tariff customers.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng