NERC Orders Compensation for Affected Electricity Customers

The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (Discos) to compensate customers in Band ‘A’ who experienced service shortfalls due to gas supply constraints and vandalism from February to March 2026. This directive, outlined in public notice NERC 2026 002, addresses the significant impact of widespread generation shortfalls on the ability of Discos to meet minimum service commitments.

Customers classified in Band ‘A’ are expected to receive at least 20 hours of electricity supply daily. Those receiving less than 18 hours will be eligible for a special compensation package.

Non-maximum demand customers will receive compensation equivalent to 20 percent of their average energy bill, while maximum demand customers will also receive similar compensation. NERC has set a deadline for the completion of the compensation process by May 31, 2026, for service shortfalls arising in March 2026, with full implementation by June 30, 2026.

The commission emphasizes its commitment to consumer protection and market stability.