NERC Directs DisCos to Compensate Band A Customers Over Service Delivery Shortfalls
Oru Leonard
The Nigerian Electricity Regulatory Commission (NERC), has approved a special compensation package for eligible Band A electricity customers impacted by power supply disruptions caused by grid generation constraints between February and March 2026.
In a public notice announcing Directive No. NERC/2026/002, the Commission said the measure was introduced following significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented several Distribution Companies (DisCos) from delivering the minimum service levels required for Band A customers.
According to NERC, the disruptions were largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors considered beyond the operational control of the affected DisCos.
Under the directive, the compensation scheme covers the period from February to March 2026. For Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours, compensation will be implemented in line with the provisions of Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
The Commission also introduced a special compensation arrangement for Band A feeders that received less than 18 hours of daily supply during the affected period. NERC stated that such feeders would not be downgraded and that eligible customers would receive compensation equivalent to 20 per cent of the approved February 2026 energy cap.
For Non-MD customers, the compensation will amount to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder, while MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC explained that prepaid customers would receive the compensation through token credits, while postpaid customers would benefit through bill adjustments.
The Commission directed DisCos to complete compensation for February 2026 by May 31, 2026, and compensation for March 2026 by June 30, 2026.
To safeguard consumers, NERC prohibited Distribution Companies from offsetting compensation credits against existing customer debts and mandated them to clearly communicate the value and period of compensation to beneficiaries.
The regulator reaffirmed its commitment to consumer protection and the stability of the electricity market, noting that it would closely monitor implementation and verify compliance to ensure that all eligible customers receive the compensation due to them.
