NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls

NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls

 

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 regulator announced the measure in a public notice issued on Thursday, citing widespread generation constraints that prevented electricity Distribution Companies (DisCos) from meeting the minimum service levels promised to some Band A customers during the period.

According to NERC, the disruptions were largely triggered by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors it said were beyond the control of the DisCos.

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 contained in Addendum No. NERC/2024/003, covering both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

For feeders that recorded less than 18 hours of daily electricity supply, NERC ruled that they would not be downgraded during the affected period.

Instead, eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their feeders, while MD customers will receive credits equal to 20 per cent of the average energy billed per MD customer in February 2026.

The commission said prepaid customers would receive the compensation through energy token credits, while postpaid customers would benefit through adjustments to their electricity bills.

NERC directed all DisCos to complete compensation for February 2026 by May 31, 2026, and for March 2026 no later than June 30, 2026.

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

Reaffirming its commitment to consumer protection, NERC said it would continue to monitor implementation of the directive and verify compliance across the industry to ensure that all eligible customers receive the compensation due to them.

The commission added that the intervention is aimed at safeguarding consumer interests while supporting the stability and long-term sustainability of the Nigerian Electricity Supply Industry.