NERC Orders DisCos to Compensate Band A Customers for Electricity Shortfalls

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation plan for eligible Band A electricity customers affected by reduced power supply from the national grid between February and March 2026.

In a public notice issued on Wednesday, the commission explained that the directive was issued in response to significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented distribution companies (DisCos) from meeting their committed service levels for some Band A customers.

“The directive was introduced in recognition of the significant generation shortfalls experienced across NESI between February and March 2026, which affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers,” NERC stated.

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“The shortfalls were largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors outside the direct control of the DisCos,” the commission added.

NERC said that for Band A feeders that recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 would apply to both maximum demand (MD) and non-maximum demand (Non-MD) customers.

The regulator also clarified that Band A feeders with less than 18 hours of supply during the period would not be downgraded, and eligible customers would receive special compensation.

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“Under the arrangement, Non-MD customers will receive compensation equal to 20 percent of the approved February 2026 energy cap for the affected feeder, while MD customers will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026,” NERC explained.

The commission said prepaid customers would receive compensation through token credits, while postpaid customers would benefit via bill adjustments.

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NERC further directed DisCos not to offset compensation credits against existing customer debts and to clearly inform beneficiaries about the value and period of the compensation.

The regulator reaffirmed its commitment to protecting electricity consumers while maintaining the stability and sustainability of the electricity market.

NERC said it will continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation owed to them.

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