CCCAI demands NERC crack down on DISCOs, enforce compensation for Band A Customers

The Centre for Consumer Concerns and Awareness Initiatives (CCCAI) has called on the Nigerian Electricity Regulatory Commission (NERC) to take firm action against nine electricity distribution companies (DISCOs) that failed to meet the promised 20-hour daily power supply to Band A customers, insisting that the regulator enforce full compliance with its compensation directive.

NERC had in April ordered the DISCOs to compensate customers on 557 streets across their franchise areas after widespread complaints about poor electricity supply, despite a sharp hike in tariffs based on the 20-hour supply promise.

In a statement issued by its Director of Public Affairs, Folarin Ademosu, the consumer advocacy group criticised the DISCOs’ failure as “unethical, inexcusable, and exploitative.”

“CCCAI views this as a clear breach of contract and a deceptive justification for inflated electricity tariffs. The companies promised 20 hours of supply, failed to deliver, and now must be held accountable,” Ademosu said.

He also condemned NERC’s ambiguous compensation directive, which leaves room for DISCOs to compensate customers either through additional credits or improved supply.

“This vague model does little to address the breach or to deter future exploitation. Compensation must be measurable, transparent, and proportional to the actual outages experienced,” he added.

CCCAI criticised the lack of concrete metrics, saying NERC should have mandated DISCOs to measure supply failures in kilowatts and duration, to ensure fair and accurate compensation.

“Without a proper framework, NERC’s directive appears more like a favour to failing DISCOs than justice for overburdened consumers,” Ademosu stated.

“Nigerians are already grappling with inflation and weakened purchasing power. They deserve a regulator that protects them, not one that excuses corporate failure.”

The group urged NERC to urgently develop and publish clear, enforceable guidelines on compensation modalities, including specific timelines and formats—such as vouchers or credit equivalents tied to kilowatts lost.

“Verifiable records must be kept, and compliance strictly monitored. Anything less amounts to betraying the trust of Nigerian electricity consumers,” the statement concluded.