NERC approves special compensation for Band A customers 

Date:

NERC approves special compensation for Band A customers 

This was contained In a public notice posted on the commission’s X page on Thursday.

“The Nigerian Electricity Regulatory Commission (NERC) hereby notifies electricity consumers and stakeholders of the issuance of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.”

According to the regulator, the intervention became necessary following significant generation shortfalls which hindered Distribution Companies (DisCos) from meeting the supply levels for some Band A customers.

Under the new directive, NERC said the compensation would apply to Band A feeders that received less than 18 hours of daily supply during the period.
It added that eligible Non-MD customers, compensation will amount to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder.

Similarly, MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

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

It added that compensation for customers affected in February 2026 must be completed no later than 31 May 2026, while payments relating to March 2026 shortfalls must be concluded by 30 June 2026.

NERC directed electricity distribution companies not to offset compensation credits against existing customer debts.

The regulator also mandated DisCos to clearly communicate the value and compensation period to affected customers.

“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission said.

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The commission added that it would continue monitoring implementation and verifying compliance to ensure that all eligible customers receive the compensation due to them.

The directive comes amid growing concerns over electricity supply reliability despite the introduction of the Band A tariff framework, which guarantees customers receiving at least 20 hours of daily electricity supply premium pricing arrangements.

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