General News
NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls
By Iyojo Ameh
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by prolonged power supply disruptions caused by generation constraints between February and March 2026.
The Commission announced the decision in a public notice issued alongside Directive No.
According to NERC, the disruptions were largely triggered by inadequate gas supply and repeated vandalism of critical gas and transmission infrastructure, circumstances beyond the operational control of the affected DisCos.
Band A customers are expected to receive a minimum of 20 hours of electricity supply daily under the service-based tariff framework.
The regulator explained that the compensation scheme covers the period from February to March 2026 and is designed to cushion the impact of reduced electricity supply on consumers who paid premium tariffs for improved service delivery.
Under the directive, Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to be compensated under the existing framework contained in Addendum No. NERC/2024/003. The arrangement applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For feeders that received less than 18 hours of electricity daily during the period under review, NERC directed that affected customers would receive special compensation without being downgraded to a lower service band.
The Commission said eligible Non-MD customers would receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder, while MD customers would receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
To ensure seamless implementation, NERC directed that prepaid customers be compensated through electricity token credits, while postpaid customers would receive corresponding bill adjustments.
The Commission further ordered that compensation for February 2026 must be completed by May 31, 2026, while compensation for March 2026 must be effected no later than June 30, 2026.
In a move aimed at protecting consumers, NERC prohibited DisCos from deducting compensation credits from outstanding customer debts. It also mandated electricity distributors to clearly communicate the value and period of compensation received by each customer.
The regulator reaffirmed its commitment to consumer protection and the sustainability of Nigeria’s electricity market, stressing that it would closely monitor compliance by Distribution Companies to ensure all eligible customers receive the compensation due to them.
The development comes amid growing concerns over persistent grid instability, gas supply