Federal Government to Compensate High-Paying Band A Users for Blackouts in Northern Nigeria

By DAYO ADESULU

Minister of Power Confirms Exemption from Billing During Outage Periods

The Federal Government of Nigeria announced on Monday that discussions are in progress with the Nigerian Electricity Regulatory Commission (NERC) and power distribution companies (DISCOs) to compensate high-paying Band A users for the recent widespread blackouts affecting the northern region. Minister of Power, Mr. Adebayo Adelabu, confirmed that consumers impacted by the outages will be exempt from billing for the duration of the power failures.

Assurance of No Billing During Outages

During a briefing with President Bola Tinubu at the Aso Rock Villa in Abuja, Adelabu emphasized that all customers who experienced prolonged outages would not incur charges for the blackout period. This measure ensures that residential, commercial, and industrial consumers are relieved from financial burdens during times of service disruption.

A significant power failure recently affected 17 northern states, leaving millions without electricity. Authorities attributed the outages to vandalism that damaged the critical Shiroro-Kaduna transmission line, a major source of electricity supply for the northern region. The Federal Government also noted that swift repairs have been hindered by security concerns for maintenance crews tasked with restoring service.

Commitment to Address Consumer Concerns

When questioned about plans to direct service providers to compensate those affected by the blackout, particularly high-paying Band A consumers, Minister Adelabu stated, “Yes, we are working on something.” He revealed plans for a meeting with the chairman of NERC and representatives from all DISCOs to discuss the situation further.

“For those days during which they suffered a blackout, there should be no billing of any sort for any customer, whether household, commercial, or industrial,” Adelabu reiterated.

Understanding Band A Tariffs and Consumer Categories

NERC categorizes electricity consumers into five bands—A through E—based on the reliability of their electricity supply, balancing service quality with corresponding tariffs. Band A consumers, who enjoy a minimum of 20 hours of electricity per day, are billed the highest rates, typically between N55 and N60 per kilowatt-hour (kWh).

• Band B: 16 to 20 hours of electricity daily, charged around N225 per kWh.
• Band C: Minimum of 12 hours per day.
• Band D: Minimum of 8 hours daily.
• Band E: Minimum of 4 hours per day.

This band-based tariff structure aims to align rates with actual supply while motivating distribution companies to enhance service reliability. However, many consumers express frustration over discrepancies between promised and actual service levels, often feeling they are billed for unreliable electricity supply.

Conclusion: A Step Towards Improved Accountability

The Federal Government’s commitment to exempt high-paying Band A users from billing during recent outages marks a proactive approach to addressing consumer grievances in the electricity sector. As discussions with NERC and DISCOs continue, stakeholders hope to see improvements in service delivery and accountability among power providers, ultimately enhancing the reliability of electricity supply in Nigeria.