NERC reduces Band A feeders from 875 to 480

Nigerian Electricity Regulatory Commission, NERC, says it has reduced its Band A feeders in the country from 875 to 480 after critical review, because a lot of the feeders failed to meet the 20-hour average power supply service.

Fresh Angle International, can report that the Commission, made the clarification via an extract of its previous press briefing, published this morning, Thursday April 4 on its X handle.

Whilst noting that it had ordered the DisCos to downgrade many of the feeders immediately for not meeting the minimum 20-hour power supply, the Commission, explained: “Out of the over 3,000 DisCos' feeders, 875 of them are in Band A but after the NERC review, they have been reduced to under 500 (around 480\ feeders which qualify as Band A feeders and are currently meeting the 20-hour average service.

“NERC received applications from the Distribution Companies (DisCos) to review rates. Prior to this, NERC classified customers on the basis of service level of feeders where there is Band A, Band B, Band C, Band D and Band E.

“These under 500 Band A feeders are estimated at 17% of the total number of feeders of the DisCos. Similarly, about 15% of the customer population are currently connected to these Band A feeders. The 85% customers are connected to feeders in other band levels that are not meeting the 20-hour power supply.

“Following this, NERC reviewed the DisCos' applications and decided that only 17% of the entire feeders and less than 15% customers may be affected by any tariff increase. Further to that, NERC has issued an order titled, "April 2024 Supplementary Order" effective 3rd April 2024. Vide the Order, NERC approved a rate review of N225 per kilowatt hour kWh) for just under 15% of the customer population who are on Band A in the Nigerian Electricity Supply Industry (NESI).

“This means, less than 15% of the customers will be affected from the total customer population. For these customers, it has been proven that they are enjoying 20 hours of power supply daily. The reason for the rate review for this about 15% customers include: The quality of infrastructure in NES varies from one location to the other; there are certain locations where without any additional investment, the DisCos and the Transmission Company of Nigeria can deliver a minimum of 20 hours of power supply per day.

“But in some locations, there will be a need to increase the quality of the infrastructure before the hours of supply can improve. Customers in other Bands are NOT affected as they do not get power supply up to 20 hours. However, there are targets that have been provided for the DisCos which NERC will monitor to ensure the migration of those customers to better electricity supply service.”

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