Band A Customers at Risk: DisCos to Initiate Downgrades if Power Supply is Inadequate

NERC’s New Strategy: Ensuring Supply Compliance by Downgrading Non-Qualifying Customers

The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to the Distribution Companies (DisCos) in the country, advising them to downgrade customers if they are unable to meet their electricity supply obligations.

This directive follows concerns about power shortages and the challenges faced by DisCos in consistently providing electricity to all customers.

NERC’s stance is aimed at ensuring that electricity supply is fairly distributed based on available capacity.

The commission has suggested that, if certain DisCos are unable to meet the full demand of all their customers, they should consider categorizing them into lower supply bands to manage expectations and avoid further strain on the grid.

The idea is that by downgrading certain customers—particularly those in areas where supply is most unreliable or scarce—DisCos can more effectively distribute power based on their capacity, and avoid overloading the system.

This move is seen as a temporary measure to ensure more equitable access to electricity and to stabilize the power sector.

However, this recommendation may be controversial, with some customers and industry stakeholders concerned about the implications for their access to electricity and the potential for further inefficiencies in the power sector.

The NERC’s directive is likely to prompt further debate on how to address the persistent issues of inadequate power supply in Nigeria.