NERC Orders Compensation for Band A Customers over Power Supply Shortfalls

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply disruptions arising from generation constraints between February and March 2026.

The commission, in Directive No. NERC/2026/002, said the intervention became necessary following significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented some Distribution Companies (DisCos) from meeting their committed service levels to Band A customers.

NERC attributed the shortfalls mainly to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct control of the affected DisCos.

Under the directive, customers on Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to benefit from the existing compensation framework contained in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

The commission also approved special compensation for customers on Band A feeders that received less than 18 hours of electricity supply during the affected period. It stated that the feeders would not be downgraded despite falling below the prescribed service threshold.

According to NERC, eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder, while MD customers will be compensated with 20 per cent of the average energy billed per MD customer in February 2026.

The regulator said prepaid customers would receive compensation through token credits, while postpaid customers would get bill adjustments.

It directed DisCos to conclude compensation for February 2026 by May 31, 2026, and for March 2026 by June 30, 2026.

NERC further barred Distribution Companies from using compensation credits to offset customers' outstanding debts and directed them to clearly communicate the value and period of compensation to beneficiaries.

The commission reiterated its commitment to consumer protection and promised to monitor compliance to ensure all eligible customers receive the approved compensation.