NERC gives update on compensation for Band A customers

The Nigerian Electricity Regulatory Commission (NERC) has announced a compensation package for eligible Band A electricity customers affected by poor power supply caused by generation constraints on the national grid between February and March 2026.

In a public notice shared on its social media platforms on Thursday, the commission said the decision followed generation shortfalls across the Nigerian Electricity Supply Industry, which affected the ability of electricity distribution companies (DisCos) to provide the minimum service levels promised to some Band A customers during the first quarter of the year.

NERC said it issued Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints to address the issue.

According to the commission, the directive was introduced “in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry between February and March 2026, which affected the ability of distribution companies to meet the committed service levels for some Band A customers”.

ALSO READ: Lagos Assembly ticket: Agege APC leaders petition Tinubu, challenge primary result

The regulator explained that the power supply shortfalls were largely caused by factors beyond the control of the DisCos.

“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos,” the commission stated.

NERC said the compensation scheme covers the period between February and March 2026.

It explained that customers connected to Band A feeders that received an average daily electricity supply of between 18 and 20 hours during the period would continue to receive compensation under the existing framework.

It stated, “Where a Band A feeder recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 shall apply to both Maximum Demand and Non-Maximum Demand customers.”

The commission also introduced compensation for Band A customers connected to feeders that received less than 18 hours of electricity supply daily during the affected period.

According to the directive, affected Band A feeders will not be downgraded during the covered period.

NERC added that eligible customers would receive compensation based on their customer category.

For non-maximum demand customers, the commission said they would receive “compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder”.

Similarly, NERC said maximum demand customers would receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

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

NERC also directed DisCos to complete compensation for February 2026 by May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.

The commission introduced measures aimed at ensuring customers receive the full value of the compensation.

It stated that “distribution companies are prohibited from offsetting compensation credits against any existing customer debt”, adding that “customers must be clearly informed of the value and period of compensation received”.

Reaffirming its position on consumer protection and market stability, NERC said it remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.

The commission added that it would continue to monitor implementation and verify compliance by distribution companies to ensure all eligible customers receive the compensation due to them.