The Nigerian Electricity Regulatory Commission (NERC) has ordered nine Distribution Companies (DisCos) to compensate customers paying the highest tariffs but receiving poor power supply.
The electricity regulator said the affected customers, classified under Band A and promised at least 20 hours of power daily, didn’t get the supply they paid for in April.
As a result, the DisCos are to either credit these customers or improve supply in the coming months.
This decision was contained in the April 2025 Multi-Year Tariff Order (MYTO), which outlines how Nigeria’s electricity sector is expected to function under the new tariff regime.
The directive affects 557 streets spread across 152 power feeders.
The DisCos required to comply are: Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKEDC), Port Harcourt Electricity Distribution Company (PHED), Kano Electricity Distribution Company (KEDCO).
Others include, Kaduna Electricity Distribution Company (KAEDC), Ikeja Electric (IE), Ibadan Electricity Distribution Company (IBEDC), Benin Electricity Distribution Company (BEDC), and Enugu Electricity Distribution Company (EEDC).
The move follows a sharp tariff hike of over 300 per cent exactly a year ago, which increased the number of Band A customers and promised them premium service. But many households and businesses say they’ve been left in the dark, literally, despite paying more.
NERC confirmed those complaints, noting that several areas received less than the promised 20 hours of daily supply.
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According to the MYTO: “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.”
Eko Disco had the highest number of affected areas, with 155 streets across 57 feeders due for compensation. AEDC follows with 74 streets across 20 feeders.
Notable areas listed for compensation include the Army Resettlement estate, Papal Ground, Aso Garden, Sahad Super Stores, the CBN headquarters, NERC headquarters, Reiz Continental, Bassan Plaza, Nalado, the National War College, Chinese Embassy, Nigerian Identity Management Commission, Defence Headquarters, Works and Housing, and Nicon Luxury.
PHED must compensate customers on 131 streets through 22 feeders. Ikeja Electric is to cover 105 streets on 25 feeders; IBEDC, 59 streets on 14 feeders; BEDC, 14 streets on four feeders; KEDCO, two streets on two feeders; and KAEDC, three streets on one feeder.
In addition to issuing compensation, NERC has also ordered that 58 streets on 15 feeders be downgraded from Band A due to consistently poor service.
However, there’s good news for some areas. NERC upgraded 33 streets on 15 feeders to Band A after confirming improved electricity supply.
Breakdown of the downgrades shows AEDC will remove 26 streets across three feeders from Band A status. Others include: EKEDC (two streets), EEDC (two), KEDCO (two), KAEDC (six), Ikeja Electric (one), IBEDC (nine), and BEDC (ten).
Meanwhile, Enugu Disco is expected to upgrade 21 streets on eight feeders. Yola Disco will upgrade six streets on five feeders, and Jos Disco will do the same for another six streets.