The Nigerian Electricity Regulatory Commission (NERC) has ordered nine electricity Distribution Companies (DisCos) to compensate Band A customers in 557 streets across the country for failing to deliver the minimum 20-hour daily power supply as mandated under the new electricity tariff framework.
Band A customers, who pay the highest electricity rates, are expected to receive no less than 20 hours of electricity per day. However, many have continued to face erratic supply despite a tariff hike introduced a year ago that raised rates by over 300 per cent for this consumer category.
In its April 2025 Multi-Year Tariff Order (MYTO), NERC directed that the affected DisCos compensate customers through either electricity credit or improved power supply. The directive follows an analysis of feeder performance in March 2025, which revealed that 152 feeders across the nine companies fell short of the required supply hours.
The affected DisCos include Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKEDC), Port Harcourt Electricity Distribution Company (PHED), Kano Electricity Distribution Company (KEDCO), Kaduna Electricity Distribution Company (KAEDC), Ikeja Electric (IE), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), and Enugu Electricity Distribution Company (EEDC).
EKEDC has the highest number of affected areas, with 155 streets across 57 feeders due for compensation. AEDC follows, covering 74 streets and 20 feeders, including prominent areas such as NERC headquarters, CBN Headquarters, the Chinese Embassy, Area One and Two, Sahad Stores, and Reiz Continental.
PHED is to compensate 131 streets on 22 feeders, while IE will compensate 105 streets on 25 feeders. IBEDC is to cover 59 streets on 14 feeders, BEDC 14 streets on four feeders, KEDCO two streets on two feeders, and KAEDC three streets on one feeder.
The commission also ordered the downgrading of 58 streets served by 15 feeders from Band A to lower bands due to sustained poor service. Conversely, 33 streets served by 15 feeders were upgraded to Band A following improvements in supply.
Breakdown of downgrades shows AEDC will downgrade 26 streets across three feeders, EKEDC two streets on one feeder, EEDC two streets on one feeder, KEDCO and KAEDC two and six streets respectively, while IE, IBEDC, and BEDC are to downgrade one, nine, and ten streets respectively.
Upgrades include 21 streets by EEDC across eight feeders, six streets by Yola Electricity Distribution Company on five feeders, and another six by Jos Electricity Distribution Company, also on five feeders.
This directive highlights continued service delivery challenges within the power sector, even as DisCos expand their Band A customer base and collect higher tariffs. Many households and businesses have raised concerns about increased costs without corresponding improvements in electricity supply, affecting operations and reducing disposable income.
NERC’s enforcement of the service-based tariff framework signals growing regulatory pressure on DisCos to meet contractual service obligations or face revenue losses and reputational risks.
