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Nairametrics
Home Sectors Energy

NERC to DisCos: Supply 20hrs electricity to Band A customers or downgrade them 

Emem Udoh by Emem Udoh
November 22, 2024
in Energy, Sectors
NERC
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The Nigerian Electricity Regulatory Commission (NERC) has asked electricity distribution companies (DisCos) to ensure Band A customers receive the required 20 hours of daily power supply.

Speaking on Channels Television’s Morning Brief, Dafe Akpeneye, NERC’s commissioner for licensing and legal, said DisCos must immediately downgrade customers if they cannot consistently supply adequate power.

“If DisCos can’t supply such customers, the DisCos have to downgrade such customers to meet what they can provide. 

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“The distribution can distribute what is only available on the grid. So when there is no supply to the grid, the DisCos can’t meet those supply commitments. 

“But the grid has been resolved and we hope supply can improve, and when they can’t, the DisCos have to downgrade such customers,” he explained. 

He said the states are building capacity to execute the responsibilities effectively.

States Gain Powers Over Electricity Markets 

He also mentioned that states can now establish electricity markets and regulate them under the Nigerian constitution.

Additionally, he stated that distribution can be carried out intra-state without obstruction.

“States now have powers for electricity generation, transmission and distribution within the states without restrictions. 

“We should bear in mind that Nigeria is a country of laws. The Nigerian law states that the states have the power to establish and regulate electricity markets. 

“The states have the capacity, and as we speak, the team from Oyo State has issued us a notice, and they are currently spending a week in the commission, understudying what we do,” he said. 

What you should know 

The recent nationwide power grid collapse has resulted in reduced electricity supply for Band A customers.

  • The commission had increased the tariff paid by Band A customers from N68/KWh to N225/kWh
  • The Minister of Power, Adebayo Adelabu, announced that the federal government will impose sanctions on power distribution companies (DisCos) that fail to deliver a minimum of 20 hours of electricity daily to customers in the Band A category.
  • In his official X account, he also disclosed that this measure is part of the newly revised tariff structure aimed at ensuring improved service delivery for Band A electricity consumers
  • Dafe Akpeneye mentioned that the electricity distribution is contingent on grid stability, noting that the recent resolution of grid challenges could enhance power supply reliability and ensure compliance with service obligations”.
  • According to him, the government had introduced a new policy to save the drowning sector, assuring Nigerians that the pains were temporary.
  • The clarification comes as electricity consumers grapple with the recent increase in tariffs by the Nigerian Electricity Regulatory Commission (NERC).
  • The Minister also stated that the Federal Government would pay the sum of N2.9trn to subsidise electricity this year if the tariff was not reviewed.

The regulatory body has warned that Discos will face sanctions if they fail to provide at least 20 hours of electricity supply to Band A customers as mandated by the service standards.


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Tags: Band A customersDISCOSNERC
Emem Udoh

Emem Udoh

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