Poor power supply: Nigerian govt approves special compensation for Band A customers

The Nigerian Electricity Regulatory Commission, NERC, says it has issued a directive to pay special compensation for Band A customers arising from grid generation constraints between February and March.

The directive No. NERC/2026/002 on the special compensation was issued by the commission on its website in Abuja on Thursday

It said that the directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry, NESI, between February and March.

The commission said that the shortfalls affected the ability of Electricity Distribution Companies, DisCos, to meet the committed service levels for some Band A customers.

”The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos.

”Under the directive, Band A feeders that recorded an average daily supply of between 18 and 20 hours during the covered period, will have the existing compensation framework under addendum No. NERC/2024/003.

”This applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

” For feeders that fell below 18 hours of daily supply, a special compensation arrangement applies. Adding that affected feeders will not be downgraded during the coverage period, “it said.

The commission also said that Non-MD customers on such feeders will receive compensation equivalent to 20 per cent of the approved February energy cap for the affected feeder.

It said that MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in Feb.

The commission said that the compensation would be delivered as token credits for prepaid customers and bill adjustments for those on postpaid billing.

It also said that DisCOs are required to complete compensation for February by May 31, and for March by June 30.

The commission said that DisCos are prohibited from offsetting compensation credits against any existing customer debt.

” Customers must be clearly informed of the value and period of compensation received.

”The commission remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.

”The commission will continue to monitor implementation and verify compliance by Discos to ensure all eligible customers receive the compensation due to them,”it said.
NAN