NERC Approves Special Compensation for Band A Electricity Customers

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls between February and March 2026.

The commission announced the directive in a public notice issued on Thursday, explaining that the measure became necessary due to widespread generation constraints across the Nigerian Electricity Supply Industry (NESI).

According to NERC, the supply disruptions were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of electricity Distribution Companies (DisCos).

The compensation scheme applies specifically to Band A customers who experienced reduced power supply during the affected period.

Under the directive, Band A feeders that maintained an average daily supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined 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 daily, NERC stated that the 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, while MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

The commission explained that prepaid customers will receive the compensation through electricity token credits, while postpaid customers will benefit through adjustments to their bills.

NERC directed DisCos to complete compensation for February 2026 by May 31, 2026, and ensure compensation for March 2026 is fully implemented by June 30, 2026.

The regulator also prohibited DisCos from using the compensation credits to offset existing customer debts and instructed them to clearly communicate the value and period of compensation to beneficiaries.

NERC reaffirmed its commitment to protecting electricity consumers and maintaining confidence in the power sector, adding that it will closely monitor implementation to ensure all eligible customers receive the compensation due to them.

The commission said the measure reflects its ongoing efforts to balance consumer protection with the stability and sustainability of Nigeria’s electricity market.