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NERC Directs DisCos to Downgrade Band A Customers If 20-Hour Power Supply Cannot Be Ensured

NERC Directs DisCos to Downgrade Band A Customers If 20-Hour Power Supply Cannot Be Ensured

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November 23, 2024
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NERC Directs DisCos to Downgrade Band A Customers If 20-Hour Power Supply Cannot Be Ensured

The Nigerian Electricity Regulatory Commission (NERC) has instructed electricity distribution companies (DisCos) to immediately downgrade customers in the Band A category if they cannot provide the promised 20 hours of power supply daily.

Dafe Apkeneye, NERC’s Commissioner for Licensing and Legal Affairs, made this announcement during an appearance on Channels Television’s Morning Brief on Friday.

“If DisCos cannot meet the promised 20 hours for Band A customers, those customers must be downgraded to the appropriate category based on what the DisCos can actually supply,” Apkeneye stated.

He emphasized that the migration process is mandatory for customers. DisCos must apply for the reclassification and ensure they can consistently meet the supply requirements for Band A customers. If they fail to do so, they are obligated to downgrade those customers to the correct service band.

Apkeneye noted that DisCos are limited to distributing only the electricity available on the grid, acknowledging their inability to provide power when the grid lacks supply.

“However, the grid has been stabilized, and we expect the power supply to improve. If it doesn’t, DisCos must take action to downgrade affected customers,” he explained.

Regarding NERC’s decision to delegate regulatory oversight to state governments, Apkeneye highlighted that the Nigerian constitution now grants states the authority to generate, transmit, and distribute electricity within their jurisdictions.

“States can establish and regulate their own electricity markets,” he stated. “The law provides states exclusive powers over electricity generation, transmission, and distribution within their territories, as outlined in the concurrent legislative list.”

He pointed out that some states are already taking steps to enhance their capacity. For instance, Oyo State has expressed its intent to establish its own electricity market.

“Their team has met with the commission, undergone extensive training with international regulatory bodies, and has even studied best practices in Ghana. States are preparing to fully leverage these new powers,” he added.

In addressing customer complaints, Apkeneye emphasized that NERC has implemented consolidated customer protection regulations to ensure fair resolution.

“For customers to have their complaints addressed by NERC, they must first report their issues to their respective DisCo. If the DisCo fails to respond within a specified timeframe, the customer can escalate the issue to NERC’s consumer forum,” he explained.

He assured that NERC is committed to ensuring that customers receive fair resolutions, including compensation for overloading issues.

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