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NERC approves compensation for Band A power shortfalls

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced power supply shortfalls between February and March 2026 due to nationwide generation constraints.

In a public notice issued on Thursday, the commission said the measure was introduced to address disruptions in electricity supply caused by significant generation shortages across the Nigerian Electricity Supply Industry (NESI).

According to NERC, the shortfalls were primarily linked to inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors it noted were largely beyond the control of electricity Distribution Companies (DisCos).

The regulator explained that the compensation programme applies specifically to the period covering February and March 2026, during which some Band A customers did not receive the level of electricity supply guaranteed under the current service framework.

Under the directive, Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours will continue to be compensated in line with 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 daily supply, NERC said the affected feeders would not be downgraded during the compensation 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, Maximum Demand 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 their compensation through electricity token credits, while postpaid customers will benefit through direct bill adjustments.

NERC further directed all DisCos to complete compensation for February 2026 by May 31, 2026, while compensation relating to March 2026 must be fully implemented on or before June 30, 2026.

To protect consumers, the regulator also prohibited electricity distribution companies from using compensation credits to offset existing customer debts.

Additionally, DisCos have been instructed to clearly communicate the value and specific period covered by any compensation granted to customers.

The commission reaffirmed its commitment to balancing consumer protection with the sustainability of Nigeria’s electricity market, stressing that it would closely monitor implementation across all distribution companies.

NERC added that compliance verification exercises would be conducted to ensure that every eligible Band A customer receives the compensation due under the directive.

The latest intervention comes amid ongoing efforts by regulators and industry stakeholders to address power supply challenges and improve service delivery across Nigeria’s electricity sector.

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