JUST IN; NERC orders compensation packages for band A customers
JUST IN; NERC orders compensation packages for band A customers
The Nigerian Electricity Regulatory Commission (NERC) has approved a compensation package for Band A electricity consumers affected by prolonged power supply disruptions linked to generation constraints across the country’s electricity network.
In a public notice issued on Thursday, the regulator said the measure was introduced to address service delivery failures experienced by eligible customers between February and March 2026.
According to NERC, widespread generation shortages within the Nigerian Electricity Supply Industry (NESI) prevented several Distribution Companies (DisCos) from meeting the minimum service commitments required for Band A customers during the period under review.
The commission attributed the supply challenges to factors outside the control of the DisCos, including inadequate gas supply to power plants and acts of vandalism targeting critical gas and transmission infrastructure.
To cushion the impact on consumers, NERC approved a special compensation framework covering affected customers across the two-month period.
The regulator explained that Band A feeders which maintained an average electricity supply of between 18 and 20 hours daily would continue to receive compensation under the existing provisions contained in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, for Band A feeders that recorded less than 18 hours of daily electricity supply, NERC directed that such feeders should not be downgraded during the compensation period.
Instead, eligible Non-MD customers connected to the affected feeders will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their respective feeders. MD customers, on the other hand, will be credited with compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
The commission further directed that customers on prepaid meters should receive the compensation through token credits, while postpaid customers would benefit through adjustments to their electricity bills.
NERC set timelines for implementation, stating that compensation relating to February 2026 supply shortfalls must be completed by May 31, 2026, while compensation for March 2026 must be effected on or before June 30, 2026.
The regulator also prohibited Distribution Companies from applying compensation credits to offset outstanding customer debts. It instructed operators to clearly communicate the value of the compensation granted and the period it covers to every eligible customer.
Reaffirming its consumer protection mandate, NERC said it remains committed to safeguarding electricity users while supporting the long-term stability and sustainability of the power sector.
The commission added that it would closely monitor implementation of the directive and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.
