Grid Crisis and Band A Backlash: Band A Power Supply Fails Nigerian Consumers, as Tariff Burden Mounts
EDITORIAL
While electricity consumers across Nigeria’s distribution networks had hoped the Band A tariff regime would deliver more power for a premium price, the reality on the ground has become a source of mounting frustration and economic hardship.
Under the service-based tariff model, customers on Band A pay the highest tariff — ₦209.50 per kilowatt-hour (kWh) in exchange for an expected 20–24 hours of supply daily, theoretically reflecting a market-based cost of power without subsidy.
However, for many households and businesses, that expectation has failed to materialise.
High Tariffs, Low Supply: Consumers Cry Foul
Residents of Band A communities have long protested the high cost of electricity. Much of the anger stems from paying top tier rates — more than ₦200 per unit while enjoying far less than guaranteed supply. In many areas, this has meant average daily power well below 50% of the promised hours, with communities sometimes receiving only 4–6 hours of grid electricity or less. Local consumer discussions and complaints reflect a widespread sense that the service is not delivering on its core promises.
This inconsistent supply has forced many Band A customers back to diesel generators, piling additional economic burden on households already stretched by high tariffs.
Regulatory Tussle: Tariff Cuts and Power Cuts
In mid-2025, the Enugu State Electricity Regulatory Commission (EERC) drew national attention by slashing the Band A tariff from ₦209/kWh to ₦160/kWh for its franchise area, effective August 1, 2025. The move was justified by the Commission as a cost-reflective adjustment aligned with federal power generation subsidies.
The tariff reduction was intended to ease financial stress on consumers, but it inadvertently triggered a backlash within the power value chain.
The Enugu Electricity Distribution Company (EEDC) from which MainPower Electricity Distribution Limited (MEDL) sources its energy warned that implementing the lower tariff would cause significant monthly revenue losses exceeding ₦1 billion. As a result, EEDC sharply reduced energy allocation by about 50%, leading to widespread outages in parts of Enugu State shortly after the tariff change.
Residents reported days of blackout conditions in major Band A areas, contradicting the core premise of the premium tariff.
Federal and Industry Pushback
The tariff decision did not sit well with national regulators and industry stakeholders. The Nigerian Electricity Regulatory Commission (NERC) formally stated that state governments and their agencies lack the authority to unilaterally cut tariffs for power sourced from the national grid. This public notice underscored a federal/state regulatory conflict over who regulates tariffs in the reformed power sector.
Meanwhile, generation companies (GenCos) and distribution players raised concerns that the reduced tariff undermined financial viability and set a risky precedent for other regions, especially where federal subsidies are uncertain.
Promises vs. Performance: The Band A Gap
Despite regulatory mandates for service standards, enforcement remains weak. In April–May 2025, NERC ordered compensation for Band A customers in 557 streets across nine distribution companies for failing to meet the required minimum 20 hours per day of supply, highlighting systemic under-delivery nationwide.
Band A customers officially have the highest service expectations, yet in many areas these remain unmet, undermining public confidence in the model. Cost remains a major factor: without significant subsidies, consumers argue the tariff is simply too high for unreliable service.
Grid Collapse: A Recurring Headache
Compounding domestic frustrations, Nigeria’s national grid has experienced frequent instability and partial collapses, further compromising supply reliability regardless of tariff band. Multiple grid collapses have been reported across recent years, deepening power insecurity and consumer anxiety.
A Call for Policy Recalibration
Consumers and advocacy groups are increasingly calling on regulators to suspend the Band A initiative, revert to more subsidised tariffs, and overhaul enforcement of service standards. Advocates argue that if DisCos cannot provide the contracted hours of electricity, they should not be permitted to charge premium rates.
In the words of many frustrated users: “If your service does not meet the terms, the terms must change.”
For now, however, the Band A debate continues — a stark reminder that pricing reforms without consistent service delivery may do more harm than good in a country still struggling to deliver reliable power to its citizens.
EDITOR
Sam Udekwe is a journalist working in the News and Current Affairs department, Enugu State Broadcasting Service (ESBS) Enugu. He is well trained in all genres of journalistic venture.
Mr Sam read Mass Communication, graduating all with Distinction in National Diploma, Higher National Diploma and Postgraduate Diploma at IMT, Enugu and Madonna University, Okija, Anambra state, as well as M.Sc Mass Communication with Second Class(Upper Division) at National Open University of Nigeria.
He is the immediate past NUJ Chairman, Enugu state.
samowailo@gmail.com
