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NERC launches compensation plan for Band A customers after February‑March 2026 power shortages

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NERC launches compensation plan for Band A customers after February‑March 2026 power shortages
Electricity RegulationCompensation SchemeBand A Customers

The regulator approved a special relief scheme for Band A electricity users hit by gas supply gaps and infrastructure sabotage, detailing credit amounts, timelines and safeguards against debt offsets.

The Nigerian Electricity Regulatory Commission (NERC) has announced a comprehensive compensation scheme for eligible Band A electricity consumers who experienced supply interruptions during the months of February and March 2026.

The measure follows a period of pronounced generation deficits across the Nigerian Electricity Supply Industry (NESI), which impeded distribution companies (DisCos) from meeting the service standards promised to their Band A clientele. NERC identified two principal causes of the shortfall: a chronic shortage of gas feedstock necessary for power generation and repeated sabotage of critical gas pipelines and transmission assets.

Both issues lie outside the immediate operational control of the distribution utilities and have been recognised as systemic challenges requiring regulatory intervention. Under the new directive, any Band A feeder that recorded an average daily supply window of between eighteen and twenty hours will continue to receive compensation according to the existing framework detailed in Addendum No. NERC/2024/003. This framework applies equally to customers classified under Maximum Demand (MD) and Non‑Maximum Demand (Non‑MD) categories.

For feeders that fell below the eighteen‑hour threshold, NERC has stipulated a differentiated approach. Non‑MD customers attached to these under‑served feeders will be granted a credit equal to twenty percent of the authorized February 2026 energy cap for their specific feeder. In parallel, MD customers will obtain a credit calculated as twenty percent of the average energy bill incurred by MD users in February 2026.

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Electricity Regulation Compensation Scheme Band A Customers Gas Supply Shortage Nigerian Power Sector

 

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