NERC approves compensation for eligible ‘Band A’ electricity customers
By Ediri Ejoh
Nigerian Electricity Regulatory Commission (NERC) has approved special compensation for eligible ‘Band A’ customers affected by grid generation constraints.
In a statement yesterday, the commission said the compensation framework is designed to mitigate the financial burden on consumers who suffer from prolonged outages despite their premium status.
According to the statement, “NERC hereby notifies electricity consumers and stakeholders of the issuance of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
“The directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which affected the ability of 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.”
NERC noted that key provisions of the directive included “Coverage Period: The compensation scheme applies to the period covering February 2026 to March 2026.
“Compensation for Feeders with 18–20 Hours Supply – Where a Band A feeder recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 shall apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.”
On special compensation for feeders with less than 18 hours supply, NERC added that, “Affected Band A feeders will not be downgraded during the covered period; eligible customers will receive special compensation. For Non-MD customers, compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to the affected feeder.
“For MD Customers: Compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.”
On the mode of compensation, the report further stated that “Prepaid customers will receive compensation through token credits; postpaid customers will receive compensation through bill adjustments.
“Implementation timeline is such that compensation for February 2026 shall be completed no later than 31 May 2026 and compensation for March 2026 shall be completed no later than 30 June 2026,” adding that DISCOs are prohibited from offsetting compensation credits against any existing customer debt and customers must be clearly informed of the value and period of compensation received.”
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