By Ayo Kehinde
Nigeria’s electricity distribution companies (DisCos) have begun compensating customers for failing to meet the minimum power supply hours required under the country’s Band A electricity tariff regime, marking a significant shift in regulatory enforcement within the power sector.
Recent notices issued by electricity distributors show that affected customers are receiving credits running into tens of thousands of naira for service shortfalls recorded in previous months.
One customer reportedly received a credit of N30,628.90 for non-compliance with the minimum supply hours guaranteed under the Band A tariff structure.
Band A customers, who pay the highest electricity tariff in the country, are expected to receive at least 20 hours of electricity daily.
Under regulations issued by the Nigerian Electricity Regulatory Commission (NERC), distribution companies that fail to meet this threshold are required to compensate affected consumers for the service deficiency.
The compensation framework was introduced as part of broader electricity sector reforms aimed at balancing cost-reflective tariffs with improved service delivery. While the policy has existed for years, enforcement has been limited, with many customers complaining of inadequate supply despite paying premium tariffs.
The recent payouts suggest regulators are beginning to take a firmer stance on service delivery obligations. Industry observers say the development could improve accountability in the sector and encourage DisCos to invest in network upgrades and operational efficiency.
However, the compensation payments also underscore the persistent challenges facing Nigeria’s electricity industry.
Grid constraints, inadequate generation capacity, transmission bottlenecks and gas supply disruptions continue to limit the ability of distribution companies to deliver the promised hours of electricity.
Although the refunds provide some relief to affected customers, analysts note that consumers ultimately prefer reliable power supply over compensation.
The effectiveness of the policy will depend on consistent enforcement across all distribution companies and sustained improvements in electricity infrastructure nationwide.
