BREAKING: Electricity: NERC approves special compensation for Band A customers

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 grid generation constraints between February and March 2026.

In a public notice issued on Thursday, the commission said the directive became necessary following significant generation shortages across the Nigerian Electricity Supply Industry, NESI, which hindered Distribution Companies, DisCos, from delivering the committed service levels to some Band A customers.

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

The commission said the compensation scheme covers 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 equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeders, while MD customers will receive compensation equivalent to 20 per cent 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 May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 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 would continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.