NERC Imposes N15m Compensation on IE, EKDC, Other Power Firms for Electrical Accidents
- NERC mandates N15 million compensation for electrical accident fatalities under new safety reforms
- NERC extends compensation and insurance protections to contractors and livestock owners affected by electrical accidents
- Electricity companies face increased compliance and penalties of up to N20 million for safety violations and negligence
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian Electricity Regulatory Commission (NERC) has rolled out a sweeping set of safety reforms that will compel electricity companies to pay a minimum compensation of N15 million for deaths caused by electrical accidents, in one of the toughest regulatory actions ever introduced in Nigeria's power sector.
The new framework, contained in the revised Health and Safety Code for the Nigerian Electricity Supply Industry (NESI), is aimed at strengthening accountability among electricity operators and improving protection for workers, consumers and the general public amid recurring cases of fatalities, fallen power lines, transformer explosions and other network-related hazards.
Source: Getty Images
N15m compensation for deaths, permanent disabilities
Under the revised code, electricity distribution companies (DisCos), generation companies, transmission operators and other licensees are now required to maintain comprehensive insurance policies covering employees, contractors and members of the public affected by electrical accidents.
A major highlight of the new regulation is the compensation framework for victims, according to a report by BusinessDay.
NERC stipulated that families of victims who lose their lives as a result of electrical accidents must receive a minimum compensation of N15 million per victim.
The same amount will be paid to victims who suffer permanent disabilities exceeding 60 per cent. Those whose disabilities fall between 40 and 60 per cent will be entitled to N7.5 million.
For accident victims requiring medical treatment, those hospitalised for more than one week will receive N750,000, while those hospitalised for less than a week will receive N250,000. In addition, electricity companies must bear the full cost of medical care.
Contract workers get equal protection
In a move expected to benefit thousands of workers across the electricity value chain, NERC said contractors, vendors and other third-party personnel engaged by licensees must enjoy the same insurance protection and compensation benefits as permanent employees.
The revised code also extends compensation to owners of livestock killed through electrical accidents, with payments ranging from N85,000 to N600,000, depending on the category of animal involved.
Claims must be paid within six months
To prevent prolonged disputes and delays, the regulator directed that all compensation claims must be settled within six months of an accident.
Companies that fail to meet the deadline will face an additional penalty equivalent to five per cent of the compensation amount for every month of delay.
NERC warns operators over safety violations
Speaking on the revised code, NERC Chairman Musiliu Oseni said the new framework aligns the electricity industry with the provisions of the Electricity Act 2023 and international safety standards.
"The revised Health and Safety Code for the Nigerian Electricity Supply Industry is a practical document crafted with industry best practices to meet the health and safety standards outlined in the Electricity Act 2023," he said.
Oseni explained that the review was carried out by an industry-wide committee comprising representatives from the generation, transmission and distribution segments of the power sector.
Up to N20m penalty for violations
Beyond compensation, NERC has imposed stricter compliance requirements on operators.
Electricity companies are now expected to establish formal occupational health and safety systems, conduct regular risk assessments, maintain emergency response plans and provide annual medical examinations for workers.
The regulator also directed operators to report major incidents within 24 hours, while detailed investigation reports must be submitted within three weeks.
Source: Getty Images
NERC warned that companies whose negligence or safety violations lead to deaths, injuries or destruction of property could face sanctions of up to N20 million, in addition to compensation obligations.
"The Code explicitly outlines compliance requirements and penalties, and adherence is mandatory for all industry participants," Oseni said.
The reforms are widely seen as a landmark shift in Nigeria's electricity sector, placing greater responsibility on power companies and offering stronger protection to millions of Nigerians who face daily risks from electrical infrastructure.
FG to pay Nigerians for excess solar power
Legit.ng earlier reported that Nigeria is set to take a major step toward expanding electricity access and accelerating renewable energy adoption after the Nigerian Electricity Regulatory Commission (NERC) introduced new rules that will allow consumers to sell excess solar power back to the national grid.
The newly released Net Billing Regulations 2026 establish a framework that enables households, businesses and industrial users to generate electricity from renewable sources, primarily solar energy, for their own consumption while earning credits for surplus power supplied to distribution companies.
The initiative is expected to boost electricity availability, reduce pressure on the national grid and create fresh incentives for investment in clean energy solutions.
Source: Legit.ng
