NERC approves Band A compensation

The Nigeria — Nigerian Electricity Regulatory Commission (NERC) has approved a compensation scheme for eligible Band A electricity customers in Nigeria who experienced power supply shortfalls between February and March 2026. This directive, No. NERC/2026/002, addresses significant generation constraints in the Nigerian Electricity Supply Industry (NESI), primarily caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, which are factors beyond the direct control of Distribution Companies (DisCos). Customers on Band A feeders receiving between 18 and 20 hours of daily supply will continue under existing compensation frameworks. Those receiving less than 18 hours will get special compensation: Non-Maximum Demand customers will receive 20% of their approved February 2026 energy cap, and Maximum Demand customers will receive 20% of their average energy billed in February 2026. Compensation will be delivered via token credits for prepaid customers and bill adjustments for postpaid customers. NERC has mandated DisCos to complete February compensation by May 31, 2026, and March compensation by June 30, 2026, explicitly prohibiting deductions against customer debts and requiring clear communication of compensation details. The commission will monitor compliance to ensure all eligible customers receive their due relief.