The Nigerian Electricity Regulatory Commission (NERC) has approved a compensation package for Band A electricity customers affected by reduced power supply between February and March 2026.
The decision comes after widespread complaints from consumers who paid premium tariffs but received fewer hours of electricity than required under the Band A service framework.
Why NERC Is Paying Compensation
According to the electricity regulator, the compensation became necessary after a significant drop in power generation disrupted supply across parts of the country.
The commission explained that the shortfall was largely linked to challenges in gas supply as well as damage to critical gas and transmission infrastructure.
These disruptions affected the ability of electricity distribution companies to meet the minimum supply obligations expected for Band A customers.
Band A Customers Hit by Supply Challenges
Band A customers are expected to receive a minimum number of electricity supply hours daily under the current tariff structure.
However, the generation crisis reportedly left some feeders unable to maintain the required service levels during the affected months.
As a result, many consumers experienced prolonged outages despite paying higher electricity tariffs.
What Happens to Feeders That Received 18 to 20 Hours?
NERC clarified that feeders that continued to receive between 18 and 20 hours of electricity daily will remain under the existing compensation framework already established by the commission.
This means there will be no additional changes to the compensation mechanism for customers within that category.
Customers With Less Than 18 Hours to Be Compensated
For feeders that recorded fewer than 18 hours of daily electricity supply, the regulator introduced a special relief measure.
Instead of downgrading such feeders during the affected period, NERC directed that customers should receive compensation for the service shortfall.
The move is aimed at protecting consumers from being unfairly affected by circumstances beyond their control.
How Much Compensation Will Customers Receive?
Under the approved arrangement, non-Maximum Demand (Non-MD) customers will receive compensation equivalent to 20 percent of their approved energy cap for February 2026.
Meanwhile, Maximum Demand (MD) customers will receive compensation calculated as 20 percent of their average billed energy for the same period.
The regulator said the compensation is designed to provide some relief for customers who paid for a level of service that was not fully delivered.
Prepaid and Postpaid Customers to Benefit Differently
NERC explained that prepaid customers will receive their compensation through electricity token credits.
For postpaid customers, the relief will be reflected as adjustments on their electricity bills.
This approach ensures that all eligible customers receive the approved benefits regardless of their metering category.
Deadlines Given to Distribution Companies
The commission has also set strict timelines for implementation.
Distribution companies have been directed to complete compensation for February 2026 by May 31, while compensation related to March 2026 must be concluded by June 30.
NERC warned that the process must be carried out transparently and in line with regulatory guidelines.
Customers Must Be Properly Informed
As part of the directive, electricity distribution companies have been instructed to clearly communicate the value of the compensation and the period it covers to affected customers.
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The regulator also prohibited DisCos from applying the compensation toward existing customer debts, ensuring that the relief reaches consumers as intended.
Push for Greater Accountability in the Power Sector
The latest intervention highlights ongoing efforts by NERC to enforce service standards and hold operators accountable for electricity delivery.
For many consumers frustrated by frequent outages, the compensation package represents a rare acknowledgment that service failures should come with consequences and customer protection.
The development is expected to bring some relief to affected households and businesses while reigniting discussions about the long-term challenges facing Nigeria’s power sector.