The Nigerian Electricity Regulatory Commission (NERC) has ordered eight electricity Distribution Companies (DisCos) to downgrade 18 electricity feeders classified as band A to lower bands over failure to supply the supply minimum of 20 hours of electricity to customers under the feeders.
It also ordered the DisCos to compensate Band A customers in 213 feeders.The instruction was contained in the May 2025 Supplementary Order to the Multi-Year Tariff Order (MYTO).
It was reported that the affected DisCos include, 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).
A breakdown shows that Eko DisCo has the largest feeders to be compensated with 84 feeders. While the major reason was for not meeting up with the 20 hours supply, 37 feeders were to be compensated due to load shedding caused by the Transmission Company of Nigeria (TCN).
This is followed by Ikeja DisCo with 50 feeders to be compensated, 3 were downgraded to lower bands but the company got an approval to upgrade 8 feeders to higher bands.
Also, Port Harcourt DisCo was ordered to compensate 22 feeders and downgrade 5 feeders while Abuja DisCo was urged to compensate 21 feeders and had 2 feeders downgraded.
Similarly, Enugu DisCo was ordered to compensate customers on 15 feeders with 2 feeders downgraded. Kaduna DisCo was urged to compensate 4 with the downgrade of another 4 feeders while Yola DisCo was ordered to compensate 2 feeders.
It would be recalled that the regulatory agency had ordered nine DisCos to compensate 152 electricity feeders for poor supply in the month of April.
According to the NERC, the decision was made “in pursuant to the provisions of the Order on Migration of Customers and Compensation for service failure under the Service-Based Tariff Framework (“Order on Migration”) and the directive to Electricity Distribution Companies on Band A Feeder Performance Monitoring, Upgrade and Downgrade (“Directive for Operationalization of Band A Feeders”), the Commission, based on the feeder performance report for the 1 — 25 of April 2025, hereby orders as follows: EKEDP shall make appropriate compensation to the affected customers in Band A feeders listed in Appendix 2 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.
The Order also made provision for the establishment of a Transmission Infrastructure Fund (TIF) to support the funding of critical transmission infrastructure projects and novel initiatives necessary to facilitate the improved delivery of transmission services in the NESI.
It said the fund would be centrally managed and can also be used to securitize vendor financing and other Public Private Partnership (PPP) arrangements to fund infrastructure gaps in the transmission network.
“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.
