Blackout: NERC approves compensation for Band A customers
The Nigerian Electricity Regulatory Commission (NERC) has announced a special compensation for band A customers affected by blackout and insufficient supply from grid generation constraints. In a statement, NERC said 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 […]
The Nigerian Electricity Regulatory Commission (NERC) has announced a special compensation for band A customers affected by blackout and insufficient supply from grid generation constraints.
In a statement, NERC said 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.
It would be recalled that electricity consumers faced major load shedding during the period due to reduction in gas supply to power generation companies.
The reduction was caused by mounting debt to gas suppliers who reduced gas supply from an estimate of 1,629.75 million standard cubic feet (mmscf) of gas per day to 692.00 mmscf per day — representing less than 43% of the required volume.
NERC in its statement said 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.
It added that the compensation scheme applies to the period covering February 2026 to March 2026 and 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,” it added.
It said the affected Band A feeders will not be downgraded during the covered period, explaining that eligible customers will receive special compensation as follows: “Non-Maximum Demand customers will get compensation equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder while Maximum Demand customers will get compensation equivalent to 20% of the average energy billed per MD customer in February 2026.”
It said mode of compensation will see prepaid customers receiving compensation through token credits while postpaid customers will receive compensation through bill adjustments.
“Compensation for February 2026 shall be completed no later than 31 May 2026 with compensation for March 2026 completed no later than 30 June 2026.
It warned Distribution Companies from offsetting compensation credits against any existing customer debt, adding customers must be clearly informed of the value and period of compensation received.
“NERC 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 Distribution Companies to ensure all eligible customers receive the compensation due to them.”