NERC approves compensation for Band A electricity customers over supply shortfall

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The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation scheme for eligible Band A electricity customers affected by grid generation constraints experienced between February and March 2026.

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In a public notice issued through Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, the Commission said the measure was introduced in response to significant generation shortfalls within the Nigerian Electricity Supply Industry (NESI), which affected the ability of Distribution Companies (DisCos) to meet committed service levels.

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NERC explained that the shortfalls were largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors it described as beyond the direct operational control of DisCos.

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According to the directive, the compensation covers the period from February 2026 to March 2026.

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The Commission stated that for Band A feeders that recorded an average daily supply of 18 to 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 will apply to both Maximum Demand and Non-Maximum Demand customers.

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For feeders that received less than 18 hours of supply, affected Band A customers will receive special compensation, while the feeders will not be downgraded during the period under review.

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Under the arrangement, Non-Maximum Demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for the affected feeder, while Maximum Demand customers will receive 20 per cent of their average energy billed for February 2026.

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NERC also outlined the mode of compensation, stating that prepaid customers will receive token credits, while postpaid customers will benefit through direct bill adjustments.

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The Commission directed that compensation for February 2026 must be completed by May 31, 2026, while that of March 2026 must be concluded by June 30, 2026.

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It further warned that Distribution Companies are not allowed to offset compensation credits against existing customer debts, adding that customers must be properly informed of the value and period of compensation received.

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NERC reaffirmed its commitment to protecting electricity consumers and ensuring stability in the electricity market, stating that it will continue to monitor implementation and enforce compliance by DisCos to guarantee that eligible customers receive due compensation.

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