NERC orders DisCos to compensate Band A customers for power supply shortfalls

THE Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.

In a public notice issued on Wednesday, the commission announced a special compensation arrangement following widespread generation shortages across the Nigerian Electricity Supply Industry (NESI), which disrupted the ability of DisCos to deliver the minimum electricity supply promised to some Band A consumers.

According to NERC, the supply disruptions were mainly caused by inadequate gas supply as well as vandalism of major gas and transmission infrastructure, circumstances it said were beyond the operational control of distribution companies.

“The directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry between February and March 2026,” the commission stated.

The regulator explained that the existing compensation framework under Addendum No. NERC/2024/003 would remain applicable to Band A feeders that maintained an average daily supply of between 18 and 20 hours during the affected period.

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However, feeders that recorded less than 18 hours of electricity supply will not be downgraded, with affected customers instead receiving special compensation from their respective DisCos.

Under the arrangement approved by the commission, non-maximum demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for the affected feeder.

For maximum demand customers, compensation will amount to 20 percent of the average energy billed per customer in February 2026.

NERC said customers on prepaid meters would receive the compensation through electricity token credits, while postpaid customers would benefit through adjustments to their electricity bills.

The commission further directed electricity distribution companies not to apply the compensation credits toward settling existing customer debts.

It also instructed DisCos to clearly disclose the value of compensation granted and the period covered to all eligible customers.

“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the regulator said.

The commission added that it would continue to monitor implementation of the directive and verify compliance to ensure all qualified customers receive the approved compensation.