The Nigerian Electricity Regulatory Commission (NERC) has approved the rollout of special compensation for Band A customers who experienced a drop in electricity supply in February and March
The Nigerian Electricity Regulatory Commission (NERC) has approved the rollout of special compensation for Band A customers who experienced a drop in electricity supply in February and March 2026.
According to a statement by the commission on Thursday, the move comes amid a shortfall in the industry during the months. NERC said the drop in power supply, attributed to inadequate gas supply, affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers.
“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos,” part of the statement reads.
The move comes at a time when electricity supply has plunged, driving complaints from Nigerians. At a time of inflation and financial crisis, Nigerians believe an increase in electricity tariffs should be accompanied by a quality supply.
Stressing its commitment to customer protection, NERC noted that the compensation is to ensure the stability and sustainability of the Nigerian electricity market.
As such, it said all DisCos have been directed to follow the order and are also prohibited from offsetting compensation credits against any existing customer’s debt.
“The Commission will continue to monitor implementation and verify compliance by Distribution Companies to ensure all eligible customers receive the compensation due to them,” it said.
This isn’t the first time the commission is introducing compensation. In fact, there’s an existing framework under Addendum No. NERC/2024/003, where Band A users receive compensation for an average daily electricity supply of between 18 and 20 hours.
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How the compensation for Band A customers will workAccording to the statement, the compensation period is from February 2026 to March 2026, being the months when the industry experienced the shortfalls.
The compensation will be in the form of bill credit and not cash. NERC noted that prepaid customers will receive compensation through token credits, and postpaid customers will receive compensation through bill adjustments.
The special compensation framework for Band A customers under Maximum Demand (MD) and Non-Maximum Demand (Non-MD) will cover those who received less than 18 hours of daily supply.
Non-MD customers are to receive compensation equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder. MD Customers’ compensation will be based on 20% of the average energy billed per MD customer in February 2026.
While the compensation for non-MD customers is based on the average maximum unit approved for DisCos’ distribution to feeders, MD is based on actual usage by the customer.
NERC raises prices of prepaid electricity meters by 40% According to the commission, the special compensation for February 2026 is expected to be completed no later than 31 May 2026, while that of March 2026 should be completed no later than 30 June 2026.
“Customers must be clearly informed of the value and period of compensation received and affected Band A feeders will not be downgraded during the covered period,” it noted.
