NERC Unveils Surprise Compensation Plan as Millions of Band A Customers Count Their Losses

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls between February and March 2026.
The commission announced the decision on Thursday, citing widespread generation constraints across the Nigerian Electricity Supply Industry (NESI) that prevented Distribution Companies (DisCos) from meeting their promised service levels to some Band A consumers.
According to NERC, the disruptions were largely triggered by inadequate gas supply and the vandalism of critical gas and transmission infrastructure—factors beyond the direct control of the DisCos.
Under the directive, Band A feeders that maintained an average daily supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For feeders that recorded less than 18 hours of daily electricity supply, NERC said they would not be downgraded during the affected period. Instead, eligible Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for their feeders, while MD customers will receive credits equivalent to 20 percent of the average energy billed per MD customer in February 2026.
The commission stated that prepaid customers will receive compensation through token credits, while postpaid customers will benefit through bill adjustments.
NERC directed DisCos to complete compensation for February 2026 by May 31, while compensation for March 2026 must be implemented no later than June 30.
The regulator also prohibited DisCos from using compensation credits to offset existing customer debts and instructed them to clearly communicate the value and period covered by the compensation.
Reaffirming its commitment to consumer protection and power sector stability, NERC said it would closely monitor implementation to ensure all eligible customers receive the compensation due to them.