The Nigerian Electricity Regulatory Commission (NERC) has introduced a tougher safety and compensation regime for the power sector, requiring electricity companies to pay a minimum of N15 million for fatalities resulting from electrical accidents while strengthening accountability measures across the industry.
- +NERC tightens safety net, imposes N15m death compensation on power firms
The new provisions are contained in the revised Health and Safety Code for the Nigerian Electricity Supply Industry (NESI), which seeks to improve protection for workers, electricity consumers and members of the public amid persistent concerns over electrocutions, fallen power lines, transformer explosions and other network-related accidents.
The new provisions are contained in the revised Health and Safety Code for the Nigerian Electricity Supply Industry (NESI), which seeks to improve protection for workers, electricity consumers and members of the public amid persistent concerns over electrocutions, fallen power lines, transformer explosions and other network-related accidents.
Under the revised framework, electricity distribution companies (DisCos), generation companies, transmission operators and other licensees will be required to maintain comprehensive insurance policies covering employees, contractors and third parties who may be affected by electrical accidents.
A key feature of the code is the introduction of a clearly defined compensation framework for accident victims.
According to the code, compensation payable for loss of human life resulting from an electrical accident shall be a minimum of N15 million per victim.
The same amount will apply to victims who suffer disabilities exceeding 60 percent, while those with disabilities ranging between 40 percent and 60 percent will be entitled to compensation of N7.5 million.
Victims requiring medical treatment are also covered under the new framework. Individuals hospitalised for more than one week following an electrical accident will receive N750,000, while those hospitalised for less than a week will be entitled to N250,000. The code further requires electricity companies to bear the full cost of medical treatment for accident victims.
In a move expected to strengthen protection for thousands of contract workers in the power industry, NERC stated that contractors, vendors and other third-party personnel retained by licensees must receive the same insurance cover and compensation benefits as permanent employees.
The regulator also established compensation rates for livestock killed as a result of electrical accidents, with payments ranging from N85,000 to N600,000 depending on the type of animal involved.
Musiliu Oseni, chairman of NERC, said the revised code was developed to align the sector with the provisions of the Electricity Act 2023 and global safety best practices.
“The revised Health and Safety Code for the Nigerian Electricity Supply Industry is a practical document crafted with industry best practices to meet the health and safety standards outlined in sections 34(1)(e) and 34(2)(b) of the Electricity Act 2023,” Oseni said in the foreword to the document.
He noted that the review was undertaken by a broad industry panel comprising representatives from the generation, transmission and distribution segments of the electricity market alongside other stakeholders.
To ensure prompt settlement of claims, the code mandates that compensation payments be made within six months of an accident. Failure to meet the deadline will attract an additional penalty of five percent of the compensation amount for every month of delay.
The revised code represents one of the most significant safety reforms introduced in the electricity sector in recent years, imposing stricter compliance obligations on operators while giving NERC wider enforcement powers.
Highlighting one of the most important reforms contained in the document, Oseni said: “The revised Code clarifies the compensation framework for accidents in the Nigeria Electricity Supply Industry (NESI). It also includes sections on clearing buildings from power line right-of-way and stringent measures to enforce discipline and mitigate workplace accidents.”
Beyond compensation, the code introduces a broad range of safety requirements aimed at reducing accidents across the electricity value chain.
All licensees are now required to establish formal occupational health and safety management systems, conduct routine risk assessments, maintain emergency response plans, establish safety committees and provide annual medical examinations for workers.
The code also compels electricity operators to report major incidents to the regulator within 24 hours. Accidents involving death, injury, electric shock, animal fatalities or significant property damage must be reported immediately, while preliminary investigation reports are expected within 72 hours and comprehensive reports within three weeks.
NERC further warned that operators whose violations of safety codes and technical regulations result in deaths, injuries or destruction of property could face penalties of up to N20 million in addition to compensation obligations.
“The Code explicitly outlines compliance requirements and penalties, and adherence is mandatory for all industry participants,” Oseni said.
He stressed that the responsibility for safety extends beyond electricity companies to every participant operating within the power sector.
“The Health and Safety Code for the Nigerian Electricity Supply Industry applies to all NERC licensees and any individual within the electricity value chain operating an electrical premises. Under the circumstances outlined in this Code, such persons bear the responsibility of ensuring the health and safety of workers, equipment, and the public,” he said.
