NERC Announces Compensation for Band A Customers Over Poor Power Supply.
The Nigerian Electricity Regulatory Commission (NERC) has approved a compensation plan for eligible Band A electricity customers who experienced service disruptions linked to power generation constraints earlier in the year.
The intervention follows supply shortages recorded across the electricity sector between February and March 2026, which affected the ability of distribution companies to maintain the service levels expected under Band A classification.
According to the regulator, the special arrangement was introduced through a new directive designed to address the impact of generation limitations on affected consumers.
NERC explained that the disruptions were largely driven by factors outside the control of electricity distribution companies, particularly inadequate gas supply and attacks on critical gas and transmission infrastructure.
The compensation programme applies specifically to customers connected to Band A feeders during the affected period.
Customers on feeders that maintained average daily supply levels between 18 and 20 hours will continue under the existing compensation framework already in place.
However, customers connected to feeders that delivered less than 18 hours of electricity daily during the period will qualify for additional support under the new arrangement.
The commission stated that feeders affected by the shortfalls will retain their Band A classification during the compensation period despite service gaps.
For customers using prepaid meters, compensation will be issued through electricity token credits, while postpaid users will receive adjustments directly on their bills.
NERC also instructed distribution companies to complete compensation payments for February outages by the end of May 2026, while compensation linked to March disruptions must be concluded before the end of June.
To ensure transparency, electricity companies have been directed not to deduct compensation from existing customer debts and must clearly communicate the value and duration of credits issued to consumers.
The regulator said it would continue monitoring implementation across distribution companies to ensure compliance and guarantee that all eligible customers receive the compensation due to them.
The compensation announcement comes against the backdrop of broader challenges facing the power sector, including declining gas supply to thermal plants, load rationing across the grid, and repeated complaints from consumers over electricity shortages.
Despite these challenges, some electricity users have recently reported signs of improved supply in parts of the country as operators work to stabilise generation and distribution levels.
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