The Nigerian Electricity Regulatory Commission (NERC) has directed the downgrade of 18 Band A electricity feeders operated by eight electricity distribution companies (DisCos), following their failure to provide the minimum required 20 hours of daily electricity supply to customers. The directive was issued as part of the Supplementary Order to the Multi-Year Tariff Order (MYTO) for May 2025.
Band A feeders are categorized as premium feeders, where customers pay higher tariffs in exchange for a guaranteed supply of at least 20 hours of electricity per day. NERC’s action is a result of service-based tariff monitoring, which revealed persistent failure by certain DisCos to meet the service obligations tied to Band A classifications.
Affected distribution companies include Abuja Electricity Distribution Company (AEDC), Enugu Electricity Distribution Company (EEDC), Eko Electricity Distribution Company (EKEDC), 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).
According to the Commission, the failure of these DisCos to meet their obligations breaches the Service-Based Tariff (SBT) framework, which ties tariff rates to hours of supply. Customers on downgraded feeders will now be moved to lower bands with corresponding tariff adjustments.
In a further move to protect consumers, NERC also ordered the compensation of customers across 213 feeders who were billed at Band A rates without receiving the expected level of service. Compensation is to be made in the form of electricity credits or improved service delivery. This decision aligns with the Commission’s Order on Migration of Customers and Compensation for Service Failure, reinforcing NERC’s commitment to consumer protection.
Breaking down the impact:
- Eko Electricity Distribution Company (EKEDC) is to downgrade 5 feeders and compensate customers on 84 feeders.
- Ikeja Electric (IE) will downgrade 3 feeders, compensate for 50, and has received approval to upgrade 8 other feeders.
- Port Harcourt DisCo (PHEDC) will downgrade 5 feeders and compensate customers on 22.
- Abuja DisCo (AEDC) and Enugu DisCo (EEDC) will each downgrade 2 feeders and provide compensation accordingly.
- Kaduna DisCo (KAEDCO) has been ordered to downgrade 4 feeders.
- Yola DisCo (YEDC) is downgrading 2 feeders.
In a bid to support long-term infrastructure improvement, NERC also announced the creation of a Transmission Infrastructure Fund (TIF). The fund will be built with a ₦2.17 charge per kilowatt-hour (kWh) of energy delivered to grid-connected customers in 2025. The TIF is expected to address critical transmission infrastructure challenges and reduce bottlenecks that hinder efficient electricity delivery.
Industry observers see NERC’s latest actions as a bold step toward enforcing accountability
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