NERC Orders Compensation for Band A Customers Hit by Power Supply Shortfalls
The directive, issued under Directive No. NERC/2026/002, is aimed at addressing service delivery failures experienced by some Band A feeders during the period due to inadequate gas supply and vandalism of critical gas and transmission infrastructure.
In a public notice released on Thursday, NERC said the disruptions were largely beyond the operational control of electricity Distribution Companies (DisCos) but nonetheless impacted their ability to meet the minimum service commitments required under the Band A tariff framework.
Under the directive, customers connected to Band A feeders that received between 18 and 20 hours of electricity supply daily will be compensated in line with the existing framework contained in Addendum No. NERC/2024/003.
However, for Band A feeders that recorded less than 18 hours of daily supply, the commission introduced a special compensation mechanism while allowing the feeders to retain their Band A classification during the affected period.
According to NERC, eligible non-maximum demand (Non-MD) customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder.
Maximum demand (MD) customers, on the other hand, will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
The commission stated that compensation would be provided through token credits for prepaid customers and bill adjustments for postpaid customers.
NERC directed DisCos to complete compensation for February 2026 by May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.
As part of customer protection measures, the regulator prohibited DisCos from applying compensation credits to offset outstanding customer debts.
It also directed electricity distribution companies to clearly communicate the value and period covered by the compensation to affected customers.
The commission said the intervention reflects its commitment to protecting electricity consumers while maintaining the stability and sustainability of the Nigerian Electricity Supply Industry.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission said.
It added that it would continue to monitor implementation and verify compliance to ensure all eligible customers receive the compensation due to them.
