Band A Customers to Receive Compensation for Poor Power Supply

The Nigerian Electricity Regulatory Commission (NERC) has mandated a special compensation package for eligible Band A electricity customers who experienced subpar power supply between February and March 2026. This directive stems from significant generation shortfalls on the national grid, which hampered electricity distribution companies (DisCos) in delivering the minimum service levels guaranteed to these customers.

NERC issued Directive No. NERC/2026/002, titled 'Special Compensation of Band A Customers Arising from Grid Generation Constraints,' to rectify the situation. The commission acknowledged that factors beyond the DisCos' direct control, such as inadequate gas supply and vandalism of critical infrastructure, largely contributed to the supply disruptions during the specified period.

The compensation scheme covers customers connected to Band A feeders that provided an average of 18 to 20 hours of electricity daily during February and March 2026. For these customers, the existing compensation framework will continue to apply. However, NERC has introduced special compensation for Band A customers whose feeders supplied less than 18 hours of electricity daily during the affected months. Importantly, these feeders will not be downgraded during this period.

Eligible customers will receive compensation tailored to their category. Non-maximum demand customers will be compensated with an amount equivalent to 20 percent of their approved February 2026 energy cap for the affected feeder. Similarly, maximum demand customers will receive compensation equivalent to 20 percent of the average energy billed per maximum demand customer in February 2026. Prepaid customers are set to receive their compensation in the form of token credits.