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Home Business & Finance

NERC Orders Reclassification of Band A Electricity Customers

Benita OrumabyBenita Oruma
November 22, 2024
in Business & Finance
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NERC Orders Reclassification of Band A Electricity Customers
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The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to reclassify customers in the Band A category if they fail to meet the required electricity supply threshold of at least 20 hours daily.

Dafe Akpeneye, NERC’s Commissioner for Licensing and Legal, disclosed this during an interview on Channels Television’s Morning Brief. He clarified that DisCos must downgrade customers to categories that align with their actual supply capacity if they cannot meet the Band A standard.

Table of Contents

Toggle
  • Downgrading Customers Based on Supply
  • States Empowered to Develop Independent Electricity Markets
  • Addressing Consumer Complaints
  • Bottom Line

Downgrading Customers Based on Supply

Akpeneye explained that the reclassification process is not optional and depends on the DisCos’ ability to provide adequate supply.

“If DisCos can’t supply the minimum 20 hours of electricity to Band A customers, they must downgrade them to a category that reflects what they can provide,” Akpeneye said.

He noted that the supply issues are often linked to limitations in the national grid. While DisCos can only distribute what is available on the grid, recent grid improvements could help stabilize supply.

States Empowered to Develop Independent Electricity Markets

Akpeneye also highlighted the recent constitutional amendments that allow Nigerian states to independently generate, transmit, and distribute electricity.

He praised Oyo State’s proactive steps, including international training and collaborations with NERC, as a model for capacity building.

“States can now establish and regulate their own electricity markets. Oyo State has shown initiative by engaging in international training and partnerships to build capacity,” Akpeneye explained.

This development provides states with the exclusive power to control electricity generation, transmission, and distribution within their territories.

Addressing Consumer Complaints

Akpeneye emphasized NERC’s commitment to protecting consumers, explaining the process for resolving disputes.

“Customers must first lodge complaints with their DisCos. If unresolved within a specific timeframe, they can escalate the matter to NERC’s consumer forum for mediation,” he said.

He assured that NERC enforces fairness in resolving billing disputes and ensuring accountability. Overbilling cases are redressed, while cases of meter bypass are addressed appropriately.

Bottom Line

NERC’s directive aims to ensure fair service delivery by holding DisCos accountable for their supply commitments. Meanwhile, states are seizing the opportunity to develop independent electricity systems, signaling potential growth in Nigeria’s energy sector.

Tags: Band ACustomerselectricityfederal characterNERCNERC Orders Reclassification of Band A Electricity CustomersNewsNigeria
Benita Oruma

Benita Oruma

Benita Oruma is a lawyer in training, a 400 level student in the university of Ibadan. She is a content writer with interest in corporate affairs and the marketplace.

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