By Chuka Madu
The Nigerian Electricity Regulatory Commission (NERC) has
approved a compensation plan for certain electricity users on Band A tariffs
who suffered reduced power supply during a recent period of widespread
generation problems.
The decision affects eligible customers who experienced
shortfalls between February and March 2026 across the Nigerian Electricity
Supply Industry (NESI), where electricity distribution companies struggled to
meet expected supply levels.
According to the regulator, the disruption was largely
driven by limited gas availability and damage to key gas pipelines and
transmission facilities. These challenges, it said, were outside the control of
the distribution companies responsible for supplying power to homes and
businesses.
NERC explained that customers on Band A feeders who still
managed to receive between 18 and 20 hours of electricity daily will continue
under the existing compensation arrangement already in place. This system
applies to both maximum demand and non-maximum demand customers.
However, for Band A feeders that received less than 18 hours
of electricity per day, a new relief measure has been introduced. Instead of
downgrading those feeders, the commission said affected users will now be given
financial compensation.
Under the arrangement, non-maximum demand customers will
receive an amount equal to 20 per cent of their approved energy cap for
February 2026. For maximum demand customers, the compensation will be
calculated as 20 per cent of their average billed energy for that same month.
For prepaid customers, the compensation will come as credit
tokens added directly to their meters. Those on postpaid plans will see the
relief reflected as deductions on their electricity bills.
The commission also set clear deadlines for implementation.
All compensation for February 2026 must be completed by 31 May 2026, while
payments or bill adjustments for March 2026 must be fully carried out by 30
June 2026.
To protect consumers, NERC ruled that electricity
distribution companies must not use the compensation to offset any outstanding
debts owed by customers. It also directed the companies to clearly inform users
about the amount and period covered by any compensation they receive.
The regulator reaffirmed its commitment to safeguarding
electricity consumers while maintaining balance and stability in the power
sector. It added that it will closely monitor the process to ensure compliance
and make sure that all eligible customers actually receive what they are owed.
For many households already frustrated by inconsistent power
supply, the move is expected to bring some financial relief, even as broader
issues in the electricity system remain unresolved.
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