NERC Approves Compensation for Power Shortage Customers

The Nigerian Electricity Regulatory Commission (NERC) has approved a compensation package for Band A electricity customers who suffered from prolonged power shortages due to generation challenges across Nigeria. This decision was announced in a public notice issued on Thursday.

The compensation aims to address service disruptions experienced during February and March 2026, as several distribution companies (DISCOs) were unable to meet the minimum electricity supply requirements for Band A customers during this period. NERC attributed the shortfall to widespread generation constraints within the Nigerian electricity supply industry (NESI), primarily caused by inadequate gas supply to power plants and vandalism targeting gas transmission facilities.

Customers connected to Band feeders who recorded less than 18 hours of daily electricity supply during the affected months will receive additional relief. The compensation will be calculated at 20 percent of the average energy bill per customer.

Prepaid meter users will receive compensation in the form of token credits, while postpaid customers will have their bills adjusted. NERC has mandated that the compensation be fully implemented by June 30, 2026.