According to NERC, the affected DisCos must implement this compensation across 152 electricity feeders due to inadequate power supply experienced in April 2025. The compensation is to be executed through either the provision of electricity credit to affected customers or a demonstrable improvement in the power supply to these areas, as detailed in the April 2025 Multi-Year Tariff Order (MYTO) released by the regulatory agency.
The DisCos facing this directive 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), and Benin Electricity Distribution Company (BEDC). Notably, Enugu Electricity Distribution Company (EEDC) has also been instructed to upgrade the power supply to specific areas within its network.
This development occurs exactly one year after NERC approved a contentious tariff hike exceeding 300 percent for Band A customers, contingent upon a minimum daily power supply of 20 hours. Despite this tariff increase and a subsequent expansion of the Band A customer base, consumers have consistently voiced their dissatisfaction with poor service delivery. Many households and businesses continue to grapple with unreliable power supply, leading to increased operational costs and a reduction in disposable income.
In the MYTO, NERC explicitly stated the basis for this directive: “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 Operationalisation of Band A Feeders”), the commission, based on the feeder performance report for March 1, 2025, hereby orders as follows.”
Specifically addressing AEDC, NERC instructed: “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.”
A detailed breakdown of the NERC order reveals that EKEDC has the most extensive number of affected streets, with compensation required for customers in 155 streets served by 57 feeders. AEDC is mandated to compensate consumers on 74 streets across 20 feeders.
Significant areas under AEDC that are slated for compensation include Army resettlement, Papal Ground, Aso Garden, Nydren supermarket, NERC headquarters, Sahad Super Stores, CBN Headquarters, Bassan Plaza, Reiz Continental, Nalado, National War College, the Chinese Embassy, and the entirety of Area One and Two. Other notable areas include the Nigerian Identity Management Commission, the Defence headquarters, Works and Housing, and Nicon Luxury.
PHED is obligated to cover 131 streets on 22 feeders, while IE is expected to compensate 105 streets on 25 feeders. IBEDC is directed to compensate 59 streets on 14 feeders; BEDC, 14 streets on four feeders; KEDCO, two streets on two feeders; and KAEDC, three streets on one feeder.
Beyond compensation, NERC has also ordered the downgrading of 58 streets on 15 feeders from Band A due to consistently inadequate power supply. Conversely, 33 streets on 15 feeders have been upgraded to Band A following improvements in service delivery to those areas.
Disaggregated data indicates that AEDC will downgrade 26 streets on three feeders, a move that could potentially lead to a reduction in revenue. EKEDC will downgrade two streets on one feeder; EEDC, two streets on one feeder; KEDCO, two streets on two feeders; KAEDC, six streets on three feeders; IE, one street on one feeder; IBEDC, nine streets on two feeders; and BEDC, 10 streets on two feeders.
In a positive development for some areas, EEDC has been authorized to upgrade 21 streets on eight feeders, Yola Electricity Distribution Company (YEDC) six streets on five feeders, and Jos Electricity Distribution Company (JEDC) six streets on five feeders, reflecting improved power supply in those locations. This action by NERC underscores its commitment to holding DisCos accountable for meeting the service standards promised to Band A customers under the new tariff regime.