POWER SECTOR IMPLEMENTATION SERIES (2): ELECTRICITY CONSUMERS PROTECTION FRAMEWORK

All over the world, households and businesses are affected by electricity issues, the availability or non-availability of it, however, each country faces its own unique circumstances. These challenges take different forms ranging from reliability to rationing, transparency in billing and affordability.

In Nigeria, the Nigerian Electricity Regulatory Commission (NERC) regulates the electricity service providers and ensure reliable, safe, and affordable electricity across the Nigerian Electricity Supply Industry (NESI). The Customer Protection Regulations (CPR) 2023 were issued to consolidate existing consumer protection instruments into a single framework. The Regulations are designed to protect end-use customers, improve access to electricity, and align service standards with international best practices. They also set minimum service standards to ensure transparency, fairness, and accountability by distribution licensees.

A recent European Union survey shows a shift in consumer priorities during the energy transition, focusing on trust in energy markets, satisfaction with services, and consumer protection. When asked about areas for improvement, 38% of respondents wanted better protection of vulnerable consumers and those in energy poverty, 34% wanted clearer, more transparent energy bills, and 34% wanted stronger prevention of unfair practices such as telemarketing. 28% highlighted the need for better access to energy data and tools to monitor consumption, while 20% wanted easier switching between providers.

In South Africa, the electricity problem has shifted from availability to affordability. While load shedding has eased and supply is more reliable, households are facing rapidly rising bills, with the potential 2026 price hike reaching 10.5%, compared to the initial expected increase of 5.4%. This is largely due to errors in how tariffs were calculated by the regulator, NERSA. Consumers are also paying for Eskom’s past mismanagement and inefficient power stations, with additional municipal fees making bills harder to understand and afford. Although electricity is more reliable, cost is now the main constraint for households.

During the third quarter of 2025, customer complaints about billing made up 30.97% of total complaints. Other common issues were metering (22.57%) and tariff bands (18.24%). These three categories together accounted for 71.78% of all complaints. The most common issues reported to the Discos were metering (43.18%), billing (20.93%), and service interruptions (8.62%), with these three categories together making up 72.73% of all complaints. At the NERC Forum Offices in 2025/Q3, appeals related to billing were the most common, accounting for 55.53% of all appeals. Appeals related to metering and disconnection made up 28.45% and 6.60%, respectively.

Across these jurisdictions, a clear pattern emerges. Affordability, billing transparency, metering accuracy, and effective consumer protection are the prevailing issues in the industry. This shows that electricity consumer challenges are not unique to Nigeria, but are part of broader, global issues within the energy sector, particularly as costs rise and regulatory systems struggle with consumer confidence.

APPLICABILITY AND SCOPE OF THE REGULATIONS

The Regulations apply broadly across the Nigerian Electricity Supply Industry, covering all categories of operators involved in delivering electricity to final consumers. The Regulations ensure that consumer protection standards are uniform across both distribution companies and newer, decentralised electricity providers that serve unserved and underserved communities. This means that the rights, obligations, and procedural standards set out in the Regulations govern not only the conduct of power suppliers but also the relationship between those suppliers and their customers.

It is worthy of note that some states in Nigeria have their own electricity laws and regulatory frameworks, giving them authority to oversee electricity distribution and consumer protection within their jurisdictions. These states are responsible for enforcing state-level rules, monitoring service quality, and addressing local complaints.

CONSUMER COMPLAINT HANDLING FRAMEWORK

The NERC has a multi‑layered system in place to ensure that consumer grievances are addressed effectively. The model is designed to prioritise resolution at the Distribution Company level while maintaining regulatory oversight and providing accessible escalation channels.

The table above summarizes the stages of complaint handling in the NESI. A complainant may lodge a complaint either directly with the NERC Customer Complaints Unit (NERC-CCU) via email, letter, or the NESI Call Centre, or directly with the Distribution Company Customer Complaints Unit (DisCo-CCU). Complaints received by NERC are forwarded to the DisCo for resolution, while NERC tracks the complaint until final resolution. A DisCo is required to resolve complaints within 15 days of receipt by the CCU except the complaints relate to meter accuracy and reconciliation of bills in which case the complaint shall be resolved within a billing cycle of one month. The DisCo is to notify the customer in writing, stating the reasons for the delay and requesting an additional period of no more than 15 days to resolve the complaint, or a longer period where construction works are required.

Each DisCo maintains its own CCU to address complaints directly addressed to it. DisCos submit monthly reports to the Commission to identify cases where regulatory intervention is necessary. In the event that a complaint is not resolved satisfactorily at the DisCo‑CCU, customers may escalate to a NERC Forum Office, which functions as a “court of second instance.” Where a complainant is dissatisfied with a decision, such a complainant may apply to NERC for a review within 10 working days.

Customer Complaints Statistics across NERC and DisCo (Q3 2025)

DISSATISFACTION WITH THE DECISION OF NERC

Customers still dissatisfied with the Commission’s final decision may appeal to the Federal High Court within 30 days. The Court may affirm, vary, or set aside the Commission’s decision. An aggrieved customer shall not resort to legal action without first exhausting all internal dispute settlement mechanisms provided under the Act. This position was the position of the Federal High Court in Lagos in Manufacturers Association of Nigeria (MAN) v. Nigerian Electricity Regulatory Commission (NERC) & 11 DisCos, which arose from the tariff increase from ₦66 to ₦225 per kilowatt hour. The Court struck out the action for failure to explore the statutory remedies available to electricity consumers before approaching the court.

Another layer of consumer protection is provided by the Federal Competition and Consumer Protection Commission (FCCPC), which works closely with NERC to ensure that consumer rights are protected. In December 2025, the FCCPC sealed the headquarters of Ikeja Electricity Distribution Company for continuous violations of consumer rights and non-compliance with regulatory directives. This action followed a case in which a 19-unit residential property was left without electricity for over two and a half years. Prior to the FCCPC’s intervention, NERC had issued a binding decision directing Ikeja Electric to unbundle a Maximum Demand account into twenty non-Maximum Demand accounts, to recognise each of the nineteen residential units and one service point as separate customer units, and to provide the required metering and connection.

The FCCPC therefore acts as an additional layer of protection for electricity consumers in Nigeria, with enforcement powers that cut across sectors nationwide. Consumers may take their grievances to the Commission where consumer rights violations occur. However, an argument can be made that consumers must first exhaust the dispute resolution mechanisms established by NERC before approaching the FCCPC, particularly where the dispute arises directly from electricity regulation and service delivery.

STATE-LEVEL REGULATION AND DECENTRALISATION

The constitutional amendment of March 2023 and the Electricity Act 2023 introduced a decentralised regulatory model, granting states the power to establish and regulate electricity markets within their boundaries. States such as Edo, Ekiti, Enugu, Imo, Kogi, Lagos, Ogun, Ondo, and Oyo can now create consumer protection frameworks, oversee service standards, and administer market oversight.

Lagos State Case Study

Under the Lagos State Electricity Law 2024, the Lagos State Electrification Agency is empowered to issue rules on consumer protection covering matters such as clear service delivery standards, including the provision of special services for vulnerable consumers. They establish the complaint handling and dispute resolution mechanisms and set procedures for applying for or withdrawing electricity services. Consumer charging, billing, collection, and credit practices are regulated to ensure fairness and transparency, while rules on non-payment, disconnections, and reconnections protect customers from arbitrary actions. The framework also provides for compensation where consumers do not receive the electricity services contracted for, mandates the establishment of consumer forums for raising concerns, and sets standards for fault repairs and emergency response. Consumers are also entitled to access their consumption data and billing history through secure online platforms as well as physical channels, ensuring transparency and accountability. The Agency also ensures that licensees maintain safe, unobstructed, and well-maintained infrastructure, including poles, conductors, and cables.

Customer Protection Enforcement by LASCOPA

The Lagos State Electricity Law 2024 provides that the Lagos State Electricity Regulatory Commission should work in collaboration with Lagos State Consumer Protection Agency (LASCOPA) to establish a dedicated complaint-handling mechanisms for electricity consumers, ensuring timely resolution and periodic updates throughout the process.

Since its establishment in 2018, LASCOPA has received over 11,100 complaints and resolved more than 10,400 cases across sectors. Earlier recoveries included over 330 million naira, of which 83 million naira came from Ikeja Electric Distribution Company and 28 million naira from Eko Electricity Distribution Company, addressing billing discrepancies and service-related issues. By 2025, cumulative recoveries rose to over 530 million naira, in addition to recoveries exceeding 14 thousand dollars.

Kogi State Case Study

In Kogi State, electricity customers have a three-step complaint process. First, dissatisfied customers are to report any issue with the Customer Complaints Unit (CCU) of their local DisCo, which is responsible for handling complaints in their area. If the customer is not satisfied with the CCU’s response, or if there is a delay in resolving the complaint, they can escalate it to the Kogi State Electricity Regulatory Commission (KERC) Consumer Forum, which reviews and rules on the complaints. Finally, if the customer is still dissatisfied with the Forum’s decision, they can submit their complaint to KERC head office, along with all supporting documents, for final resolution.

OVERLAPPING JURISDICTION

In matters relating to consumer protection the Federal Competition and Consumer Protection Act (FCCPA) makes provision for concurrent jurisdiction between the Federal Competition and Consumer Protection Commission and sector-specific regulatory agencies. An undertaking operating in any industry regulated by an agency established under federal or state law is deemed to be operating within a regulated industry for the purposes of the Act. While sector regulators may exercise jurisdiction within their respective industries, the FCCPA expressly provides that, in the event of conflict, the provisions of the FCCPA prevail over and above the relevant government agency. To manage potential conflicts of interest, the Commission is mandated to negotiate formal agreements with relevant agencies for the coordination and harmonisation of enforcement activities.

CONCLUSION

Nigeria’s current regulatory framework reflects a clear commitment to consumer protection, balancing federal oversight with state-level regulation. The Customer Protection Regulations 2023, together with state-specific laws establish comprehensive standards for customer protection. Through these measures, and with active enforcement by agencies like NERC and FCCPC, electricity consumers are empowered with greater rights, transparency, and avenues for redress. Beyond the regulatory instruments, NERC also organises town hall meetings where consumers are sensitized about their rights and the proper procedures for engaging with electricity service providers.