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Electricity: NERC Approves Compensation For Band A Customers Over Supply Shortfalls

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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