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NERC orders 9 DisCos to compensate band A customers over power supply failures

THE Nigerian Electricity Regulatory Commission (NERC) has directed nine electricity Distribution Companies (DisCos) to compensate Band A customers residing on 557 streets within their franchise areas for failing to meet the minimum power supply requirements set under the new electricity tariff structure.

Affected DisCos must provide compensation for the inadequate power supply in April across 152 electricity feeders, NERC said.

The regulatory agency made the order in its April 2025 Multi-Year Tariff Order, noting that the compensation should be carried out either through electricity credit or by improving power supply.

The ICIR reports that Band A customers are those getting a minimum of 20 hours of electricity supply daily and pay the highest electricity tariffs.

The order showed that the DisCos affected 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.

The AEDC is required to compensate consumers on 74 streets served by 20 electricity feeders.

“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.”

The ICIR reported on Friday, May 10, that residents in Jabi District of Abuja and parts of Life Camp, Kado District, and areas along Kaduna Road expressed concern over a prolonged power outage affecting the areas. 




     

     

    The NERC’s latest disaggregated data revealed that AEDC planned to downgrade 26 streets across three feeders, a move that may lead to potential revenue losses.

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    The order indicates that EKEDC has the highest number of affected streets, with compensation to be provided to customers on 155 streets served by 57 feeders.

    The ICIR reports that this development comes exactly one year after NERC approved a contentious tariff increase of over 300 per cent for Band A customers, along with a mandate for a minimum daily power supply of 20 hours.

    Despite the tariff hike and the significant expansion of the Band A customer base, consumers continue to decry poor service delivery, as many households and businesses grapple with unstable power supply, rising production costs, and shrinking disposable income.

    Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues.

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