- The Nigerian Electricity Regulatory Commission (NERC) has directed DisCos to ensure Band A customers receive a minimum of 20 hours of daily power, with penalties for non-compliance.
- NERC has raised electricity tariffs for Band A customers to N225 per KWh, citing efforts to improve service quality despite challenges with grid stability.
The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to ensure that customers in Band A receive a minimum of 20 hours of daily power supply.
In a recent interview on Channels Television’s Morning Brief, Dafe Akpeneye, NERC’s Commissioner for Licensing and Legal, emphasised that if DisCos are unable to meet this commitment, they must downgrade customers to a lower service level in line with the power they can consistently provide.
Akpeneye clarified that power availability for distribution depends on the supply from the national grid. He explained that if there is insufficient supply from the grid, DisCos cannot meet their obligations to customers. However, he reassured that the grid has been stabilised, and with improvements in supply, the situation is expected to improve. If power levels remain inadequate, customers may be downgraded accordingly.
Additionally, Akpeneye highlighted recent developments allowing states to establish and regulate their electricity markets. Under the Nigerian Constitution, states now have the authority to manage electricity generation, transmission, and distribution within their territories, free from federal restrictions. He mentioned that Oyo State, for example, is working closely with NERC to better understand the regulatory framework.
The recent collapse of the nationwide power grid has contributed to the reduced electricity supply for Band A customers. To address this, NERC raised the tariff for Band A customers from N68 per kilowatt-hour (KWh) to N225 per KWh. In response to concerns over service delivery, the Minister of Power, Adebayo Adelabu, announced that the federal government would impose sanctions on DisCos that fail to deliver the required 20 hours of daily electricity to Band A customers.
This move is part of a broader effort to improve service quality following the implementation of a new tariff structure to ensure more reliable power delivery. Akpeneye stressed that while tariff increases and service challenges may cause temporary hardship, the government is committed to stabilising the sector, including an N2.9 trillion subsidy to support the electricity market if tariffs have not been adjusted.
In line with the revised service standards, NERC has warned that DisCos could face penalties if they fail to meet the mandated 20-hour daily supply for Band A customers.