The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.
The regulatory directive comes as part of a special compensation scheme approved by the commission to cushion the impact of disruptions caused by a decline in electricity generation from the national grid.
In a public notice issued on Wednesday, NERC said the measure was necessitated by significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented some DisCos from delivering the minimum service levels promised to Band A customers.
Under the compensation plan, affected customers are expected to receive electricity credit units and billing adjustments to offset periods when the agreed hours of power supply were not met.
The commission noted that the intervention is aimed at protecting consumers and ensuring that distribution companies remain accountable for service commitments tied to the tariff structure.
Band A customers, who pay higher tariffs in exchange for a guaranteed level of electricity supply, have repeatedly raised concerns over service disruptions despite the premium rates charged by DisCos.
NERC explained that the approved compensation framework would apply to customers who experienced verified supply deficiencies during the affected period and meet the eligibility requirements outlined by the commission.
The regulator emphasized that the shortfalls were largely driven by reduced power generation nationwide, which affected energy allocation across the electricity value chain and constrained the ability of some distribution companies to meet their obligations.
Industry stakeholders say the directive underscores NERC’s growing efforts to strengthen consumer protection and enforce performance standards within the power sector.
The development is expected to provide relief for thousands of customers who complained of receiving fewer hours of electricity than stipulated under the Band A service arrangement.
Observers also view the move as a signal that regulators are prepared to hold operators accountable for service failures while promoting greater transparency in electricity billing and service delivery.
With the compensation scheme now in place, attention will shift to the DisCos and how quickly they implement the directive, as consumers await the promised electricity units and billing adjustments.
The latest intervention comes amid ongoing efforts by the Federal Government and industry regulators to stabilize power generation, improve supply reliability, and restore confidence in Nigeria’s electricity market.
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