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The Nigerian Electricity Regulatory Commission (NERC) has issued a sweeping directive mandating nine electricity Distribution Companies(DisCos) to compensate Band A customers across 557 streets for failing to meet the stipulated 20-hour daily power supply in April 2025.
Band A customers, who fall under the highest electricity tariff bracket, are entitled to at least 20 hours of daily electricity. Despite a significant hike in tariffs under the Multi-Year Tariff Order (MYTO), NERC found that many feeders failed to meet this minimum requirement. The Commission has now ordered affected DisCos to provide compensation in the form of electricity credit or improved service delivery.
According to the regulatory body’s April 2025 MYTO, the compensation covers a total of 152 feeders found to have underperformed. The directive applies to major electricity distributors including Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKEDC), Port Harcourt Electricity Distribution Company (PHED), Ikeja Electric (IE), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), Kano Electricity Distribution Company (KEDCO), Kaduna Electricity Distribution Company (KAEDC), and Enugu Electricity Distribution Company (EEDC).
EKEDC tops the list with compensation expected for customers on 155 streets fed by 57 feeders. AEDC is to compensate customers on 74 streets across 20 feeders, including high-profile locations such as Sahad Super Stores, the NERC headquarters, National War College, Papal Ground, the Chinese Embassy, and parts of Area One and Two in Abuja.
PHED will address poor power delivery across 131 streets on 22 feeders. Ikeja Electric is to compensate 105 streets, IBEDC 59 streets, BEDC 14 streets, KEDCO two streets, and KAEDC three streets.
Additionally, NERC has mandated the downgrade of 58 streets from Band A due to persistently inadequate supply. AEDC will downgrade 26 streets across three feeders, while other downgrades include: EKEDC (2 streets), EEDC (2 streets), KEDCO (2 streets), KAEDC (6 streets), IE (1 street), IBEDC (9 streets), and BEDC (10 streets).
While penalising non-compliant DisCos, NERC also rewarded improved service areas. EEDC will upgrade 21 streets across eight feeders to Band A, while Yola and Jos DisCos will upgrade six streets each across five feeders.
The directive follows widespread consumer complaints about the gap between service expectations and actual delivery. In April 2024, NERC approved a tariff increase exceeding 300% for Band A customers, under the justification of improved supply reliability. However, customers have continued to experience erratic electricity, resulting in financial strain and operational disruptions for businesses.
This compensation order aims to enforce accountability under the Service-Based Tariff (SBT) framework and reassert consumer rights amid growing dissatisfaction with the power sector’s performance.
NERC’s order is backed by provisions under its “Order on Migration” and “Directive for Operationalisation of Band A Feeders”, which demand immediate customer redress where service delivery falls below regulated thresholds. The agency stated, “AEDC shall make appropriate compensation to the affected customers… for failure to deliver up to 20 hours of average supply, but more than 18 hours.”
The order also instructs that underperforming feeders be reclassified to ensure tariff fairness and to prevent consumers from being charged premium rates for substandard service.
This development could trigger substantial revenue losses for DisCos, especially those with large numbers of downgraded feeders or compensation obligations. It may also compel infrastructure investments to upgrade faulty lines, improve grid reliability, and avoid further penalties.
As the country grapples with chronic power supply issues, NERC’s action sends a clear signal that customer protection and regulatory enforcement remain top priorities. Whether the directive translates into real change on the ground remains to be seen.