NERC Approves Special Compensation for Band A Electricity Customers

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced power supply shortfalls due to grid generation constraints between February and March 2026.

In a public notice issued on Thursday, the commission explained that the directive was necessary after significant generation shortages across the Nigerian Electricity Supply Industry (NESI) prevented Distribution Companies (DisCos) from delivering the promised service levels to some Band A customers.

According to NERC, the shortfalls were mainly caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure—issues beyond the direct control of the DisCos.

The compensation scheme applies to the period from February to March 2026.

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 for both Maximum Demand (MD) and Non‑Maximum Demand (Non‑MD) customers.

For Band A feeders that received less than 18 hours of electricity supply, NERC said the affected feeders would not be downgraded during the covered period. Instead, eligible Non‑MD customers will receive compensation equal to 20 percent of the approved February 2026 energy cap applicable to their feeders, while MD customers will receive compensation equal to 20 percent of the average energy billed per MD customer in February 2026.

The commission stated that prepaid customers will receive the compensation through token credits, while postpaid customers will benefit through bill adjustments.

NERC directed that compensation for February 2026 must be completed by 31 May 2026, while compensation for March 2026 must be implemented no later than 30 June 2026.

It also barred DisCos from offsetting compensation credits against any existing customer debts and directed them to clearly inform customers of the value and period of compensation received.

The commission reaffirmed its commitment to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.

It added that it will continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.