BREAKING: NERC approves compensation for Band A customers over poor power supply

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

In a public notice issued on Thursday, the commission said the intervention became necessary following significant generation deficits across the Nigerian Electricity Supply Industry (NESI), which prevented electricity Distribution Companies (DisCos) from meeting their committed service levels to some Band A consumers.

According to NERC, the disruptions were primarily caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct control of the DisCos.

The compensation scheme covers electricity supply deficiencies recorded between February and March 2026.

Under the directive, Band A feeders that maintained an average daily power supply of between 18 and 20 hours will continue to receive compensation 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 recorded less than 18 hours of daily electricity supply, NERC said the affected feeders would not be downgraded during the period under review. Instead, eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeders.

Similarly, MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

The commission explained that prepaid customers will receive the compensation through electricity token credits, while postpaid customers will benefit through adjustments to their bills.

NERC directed all DisCos to complete compensation payments for February 2026 by May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 2026.

The regulator also prohibited DisCos from applying the compensation credits to offset existing customer debts and instructed them to clearly communicate the value and period of compensation received to affected consumers.

Reaffirming its commitment to consumer protection and the stability of the power sector, NERC said it would closely monitor implementation and verify compliance to ensure all eligible customers receive the compensation due to them.

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