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Business & Economy

Band A: DisCos should downgrade customers if they can’t meet supply — Regulatory Commission

The FrontierThe FrontierNovember 22, 2024 2992 Minutes read0

•Blackout

The Nigerian Electricity Regulatory Commission (NERC) has directed the electricity distribution companies to downgrade customers in the Band A categories if they do not have enough capacity for supplies.

Commissioner Licensing and Legal for NERC, Dafe Akpeneye revealed this today on Channels Television.

According to him, if the DisCos cannot meet the promised 20 hours to Band A customers, the customers are to immediately be downgraded to the level for which the DisCos can meet supplies.

“With regards to the migration order is not elective to the instance of the customer. The DisCo needs to make an application and ensure that they can supply power to customers in Band A.

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

“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,” Akpeneye said.

With regards to NERC transferring regulatory oversight to states of the federation, he explained that the states have been empowered by the Nigerian constitution to generate, transmit and distribute power.

“States can now establish electricity markets, and regulate them by the Nigerian constitution. 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 also now have exclusive powers over distribution as seen in the concurrent list.

“With the states having such powers, it is of the states to exercise. Every Nigerian comes from a state. 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. Before coming to the commission, they have been to Ghana. They have also had an intensive 11-week training session with an international regulatory body. So the states are going to build capacity, learn and grow,” he said.

On customers seeking redress on complaints, NERC said the commission has a customer protection regulation which we consolidated and codified last year, to protect customers.

“Before a customer can have their complaints addressed by NERC, they first have to lodge a complaint at the Discos. If the Disco doesn’t respond at a specific time, you can now approach a small mediatory group called the consumer forum of NERC for redress.

“The complaint process has gone on well. We have seen situations where complaints don’t get resolved by the discos and get escalated to NERC and they get resolved. We always ensure that customers get a fair resolution.

“Where a customer has been overbilled, they get fair redress. But when customers bypass meters, we also make sure the case gets addressed appropriately,” he said.

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