The Nigerian Electricity Regulatory Commission (NERC) has rolled out a compensation framework for Band A electricity customers affected by service shortfalls between February and March 2026, following disruptions in power generation across the country’s electricity value chain. The regulator said the move is aimed at protecting consumers under the service-based tariff system while maintaining stability in the Nigerian Electricity Supply Industry (NESI).
According to NERC, the shortfalls were driven largely by gas supply constraints and vandalism of critical energy infrastructure, which limited distribution companies’ (DisCos) ability to meet the 20-hour daily supply benchmark required for Band A customers. Under the directive, customers who received below the stipulated supply threshold will get financial compensation, with Non-Maximum Demand customers entitled to credits equivalent to 20% of their energy cap, while Maximum Demand users will receive adjustments based on billed averages.
The commission said prepaid customers will receive token credits while postpaid users will benefit through bill reductions, with strict deadlines set for implementation by DisCos. It also barred utilities from offsetting compensation against existing debts, stressing compliance monitoring as it seeks to strengthen accountability, improve service delivery, and rebuild investor and consumer confidence in the power sector.
