NERC approves compensation for Band A customers over poor power supply

The Nigerian Electricity Regulatory Commission (NERC), in recognition of the significant power generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, has approved a compensation plan for Band A customers.

 

 

The commission in public notice sighted by BusinessDay, said that the generation shortfall affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers.

 

It attributed the shortfalls to inadequate gas supply and vandalism of critical gas and transmission infrastructure, which it said were factors beyond the direct operational control of the DisCos.

 

 

Accordingly, affected prepaid customers will receive compensation through token credits, while postpaid customers will receive compensation through bill adjustments.

 

 

The Comission stated that compensation for February 2026 shall be completed no later than 31 May 2026, while compensation for March 2026 shall be completed no later than 30 June 2026.

 

 

It also prohibited distribution companies from offsetting compensation credits against any existing customer debt, addinb that customers must be clearly informed of the value and period of compensation received.

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“The compensation scheme applies to the period covering February 2026 to March 2026. 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 (MD) and Non-Maximum Demand (Non-MD) customers.

 

“Special Compensation for Feeders with Less Than 18 Hours Supply- affected Band A feeders will not be downgraded during the covered period.

 

 

“Eligible customers will receive special compensation as follows: Non-MD Customers: Compensation equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder, MD Customers: Compensation equivalent to 20% of the average energy billed per MD customer in February 2026.

 

 

“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market. The Commission will continue to monitor implementation and verify compliance by Distribution Companies to ensure all eligible customers receive the compensation due to them,” it stated.