NERC has approvesd compensation for Band A customers over power supply shortfalls.
NewsOnline Nigeria reports that the Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls caused by generation constraints between February and March 2026.
In a public notice issued on Thursday, the commission said the measure was introduced following significant generation shortages across the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from delivering the minimum service levels promised to some Band A customers.
ALSO: CBN Unveils Payments System Vision 2028 to Boost Financial Inclusion, Innovation and Economic Growth
According to NERC, the disruptions were primarily caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of electricity distribution companies.
The compensation scheme covers affected customers for the period between February and March 2026.
Under the directive, Band A feeders that maintained an average daily electricity supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined 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 feeders would not be downgraded during the affected period. 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 Maximum Demand 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 monthly bills.
NERC directed all Distribution Companies to complete compensation payments for February 2026 no later than May 31, 2026, while compensation for March 2026 must be implemented on or before June 30, 2026.
The regulator also prohibited DisCos from using compensation credits to offset outstanding customer debts, insisting that beneficiaries must receive the full value of the approved relief.
In addition, electricity distribution companies have been instructed to clearly communicate the amount and period covered by the compensation to affected customers.
NERC reaffirmed its commitment to protecting electricity consumers while ensuring the long-term sustainability and stability of Nigeria’s power sector.
The commission stated that it would continue monitoring the implementation of the directive and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.
The latest intervention comes amid ongoing challenges in Nigeria’s power sector, including gas supply constraints, infrastructure vandalism, and recurring generation shortfalls that continue to affect electricity supply across the country.
