NERC orders compensation for Band A customers hit by power supply shortages

By Precious Mark

Thousands of electricity consumers on Band A feeders across Nigeria are set to receive compensation after the Nigerian Electricity Regulatory Commission (NERC) approved a special relief package for customers affected by prolonged power supply shortfalls between February and March 2026, with distribution companies directed to complete compensation for February shortfalls by May 31, 2026, and March shortfalls by June 30, 2026.

The Commission announced the decision in a public notice issued under Directive No. NERC/2026/002, following widespread generation constraints that prevented several Distribution Companies (DisCos) from meeting the minimum daily electricity supply promised to Band A customers, who pay higher tariffs in exchange for improved service.

According to NERC, the disruption was largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct operational control of electricity distribution companies.

The regulator said compensation for eligible customers will be delivered through electricity token credits for prepaid customers and bill adjustments for postpaid customers.

It further directed Distribution Companies not to offset the compensation against any outstanding customer debt and to clearly notify beneficiaries of the value and period covered by the compensation.

Under the directive, Band A customers whose feeders received between 18 and 20 hours of electricity daily during the affected period will be compensated under the existing framework contained in Addendum No. NERC/2024/003.

The compensation will apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

For feeders that recorded less than 18 hours of average daily supply, NERC approved a special compensation package while directing that affected feeders should not be downgraded during the covered period.

The Commission stated that eligible Non-MD customers will receive compensation equivalent to 20% of the approved February 2026 energy cap applicable to their feeder.

MD customers, on the other hand, will receive compensation equal to 20% of the average energy billed per customer in February 2026.

NERC said the intervention was necessary to cushion the impact of generation shortfalls on customers who continued to pay Band A tariffs despite not receiving the minimum service levels expected under the tariff structure.

The Commission reaffirmed its commitment to safeguarding electricity consumers while maintaining the stability of the Nigerian Electricity Supply Industry (NESI), adding that it would closely monitor implementation and verify compliance to ensure all eligible customers receive the compensation due to them.