NERC Approves Compensation for Band A Power Customers

The Nigerian Electricity Regulatory Commission (NERC) has announced a special compensation package for Band A electricity customers who experienced poor power supply due to significant generation constraints from February to March 2026. This decision was made to address the inability of electricity distribution companies to meet service level commitments during this period.

The compensation scheme, outlined in NERC's directive (No. NERC 2026 002), will cover customers connected to Band feeders that recorded an average daily supply of 18 to 20 hours.

Customers categorized as non-maximum demand will receive compensation equivalent to 20 percent of their average energy bill, while maximum demand customers will also receive a similar percentage based on their average energy bill. Prepaid customers will receive compensation in the form of token credits, and postpaid customers will have their bills adjusted.

NERC has mandated that all compensations be completed by May 31, 2026, for February 2026 and by June 30, 2026, for March 2026. The commission emphasized the importance of ensuring that beneficiaries receive the full value of their compensation.