NERC Directs DisCos to Downgrade Feeders with Inadequate Power Supply.

Regulatory Body Implements New Service Delivery Commitments and Tariff Adjustments.

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The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to all distribution companies (DisCos) to automatically downgrade any Band A feeder that fails to provide a minimum of 20 hours of power supply per day for seven consecutive days. This action is in line with the Supplementary Order to the Multi-Year Tariff Order (MYTO) 2024, which took effect from April 3, 2024.

Also, if a DisCo falls short of the committed service level on a Band A feeder for two consecutive days, they are required to publish an explanation for the lapse on their website by 10 am the following day. The company must also update affected customers on the estimated timeline for restoring the service to the committed level.

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“If the DisCo fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder will be automatically downgraded to the recorded supply level as per the applicable framework,” NERC mandated.

To ensure effective service delivery, each DisCo is also instructed to establish a rapid response team focused on maintaining the committed minimum hours of supply for each service Band, starting with Band A feeders from April 3, 2024.

Earlier this week, NERC announced a significant increase in the electricity tariff for Band A customers, raising the rate from approximately N66 to N225 per kilowatt-hour—a 240% hike. Vice Chairman of NERC, Musliu Oseni, clarified that this tariff adjustment would impact only those customers receiving 20 hours or more of power supply daily.

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The tariff adjustment was approved after considering various economic indicators, including a 12% inflation rate increase from 28.2% in January 2024 to 31.7% by March 2024. The exchange rate rose by 59%, transmission and administration costs increased by 34%, and wholesale gas to power prices went up by 11%, among other factors, as indicated in the MYTO 2024 Supplementary Order.

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