Regulator gives green light to refunds for qualified low-power electricity users in 'Band A' category

Nigerian Electricity Regulatory Commission, or NERC, has given its approval for a special compensation package for eligible 'Band A' customers who have been impacted by constraints in grid generation, as announced by Ediri Ejoh. This move is aimed at easing the financial burden on these premium customers who have endured prolonged power outages.

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The commission's statement outlined the details of the compensation framework, which is designed to address the significant generation shortfalls experienced in the Nigerian Electricity Supply Industry between February and March 2026.

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These shortfalls were primarily caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors that are beyond the control of Distribution Companies, or DisCos.

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NERC introduced Directive No. NERC/2026/002 to provide special compensation to Band A customers affected by these grid generation constraints, with the directive applying to the period from February 2026 to March 2026.

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The compensation scheme has specific provisions, including the application of the existing compensation framework under Addendum No. NERC/2024/003 for Band A feeders that received an average daily supply of between 18 and 20 hours.

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For Band A feeders that received less than 18 hours of supply, NERC stated that these feeders will not be downgraded during the specified period, and eligible customers will be entitled to special compensation.

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Non-Maximum Demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for the affected feeder, while Maximum Demand customers will receive compensation equivalent to 20 percent of the average energy billed per customer in February 2026.

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The compensation will be disbursed to prepaid customers through token credits and to postpaid customers through bill adjustments, with a specific implementation timeline in place.

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According to the timeline, compensation for February 2026 must be completed by 31 May 2026, and compensation for March 2026 must be completed by 30 June 2026.

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Furthermore, Distribution Companies are prohibited from offsetting compensation credits against any existing customer debt, and customers must be clearly informed of the value and period of compensation they receive.