NERC Approves Compensation for Band A Customers Hit by Power Shortages

• NERC has approved a compensation package for Band A electricity customers affected by supply shortfalls
• The regulator has linked disruptions to gas shortages and infrastructure vandalism across the power sector
• DisCos have been directed to credit eligible customers based on defined usage thresholds and timelines

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The Nigerian Electricity Regulatory Commission (NERC) has announced a special compensation package for eligible Band A electricity customers affected by recent power supply disruptions across the country.

In a statement posted on its X handle on Thursday, June 4, the regulator said it issued Directive No. NERC/2026/002 following what it termed “significant generation shortfalls” in the Nigerian Electricity Supply Industry (NESI) between February and March 2026.

According to NERC, the power shortfall meant several Distribution Companies (DisCos) could not meet agreed service levels for some Band A customers, who are expected to receive the highest hours of electricity supply.

The commission attributed the disruption largely to “inadequate gas supply and vandalism of critical gas and transmission infrastructure.” It, however, noted that these issues were outside the direct control of the DisCos.

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Users to receive bill adjustments, direct credits

Under the directive, compensation will apply only to the February and March 2026 service period.

NERC explained that customers on feeders that still received between 18 and 20 hours of electricity daily will be compensated under the existing framework in Addendum No. NERC/2024/003.

However, more attention has been placed on feeders that received less than 18 hours of supply. The commission said such feeders will not be downgraded during the affected period. Instead, customers will receive direct compensation.

For non-maximum demand customers, the regulator said compensation will be “equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder.” For maximum demand customers, it will be “20% of the average energy billed per MD customer in February 2026.”

Compensation method, timeline disclosed

The payment method will differ depending on how customers receive electricity bills. Prepaid users will get token credits, while postpaid customers will see deductions or adjustments in their bills.

NERC also set strict deadlines for implementation. Compensation for February 2026 must be completed by May 31, 2026, while March 2026 payments must be concluded by June 30, 2026.

In a key consumer protection move, the commission warned that “Distribution Companies are prohibited from offsetting compensation credits against any existing customer debt.”

It added that customers must be clearly informed about the value and period of any compensation received.

NERC said it will continue to monitor compliance and ensure that only eligible customers benefit from the scheme, as it reiterated its commitment to consumer protection and stability in the electricity market.

See the public notice below:

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The framework enables approved users with renewable energy systems to become “prosumers,” generating electricity for personal use while earning credits for surplus energy exported to distribution companies under regulated tariffs.