The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.
The directive follows widespread disruptions in electricity supply caused by generation challenges, including inadequate gas supply and repeated vandalism of critical gas and transmission infrastructure. According to NERC, these challenges prevented some DisCos from delivering the minimum power supply hours promised to Band A customers.
Under the new directive, customers connected to Band A feeders that received less than 18 hours of electricity daily during the affected period will be entitled to special compensation. NERC stated that these feeders will not be downgraded despite failing to meet the required service level, while affected customers will receive compensation equivalent to 20 percent of approved energy figures for February 2026.
For Band A feeders that delivered between 18 and 20 hours of electricity daily, compensation will be calculated using the commission’s existing compensation framework. The directive applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
NERC explained that Non-MD customers will receive compensation valued at 20 percent of the approved energy cap for their feeder, while MD customers will receive compensation equivalent to 20 percent of the average energy billed per customer during the period under review.
The commission further directed that prepaid customers should receive their compensation through electricity token credits, while postpaid customers will receive adjustments on their bills. It also warned DisCos against using the compensation to offset any outstanding customer debts, insisting that beneficiaries must be clearly informed about the value and purpose of the credits they receive.
According to the regulator, compensation for the February shortfall must be completed by the end of May 2026, while compensation for March must be fully implemented by June 30, 2026.
NERC said it would closely monitor compliance to ensure all eligible customers receive their compensation, reiterating its commitment to protecting electricity consumers while maintaining stability within Nigeria’s power sector.
Source: Nigerian Electricity Regulatory Commission (NERC).
