NERC approves special compensation for Band A customers after severe power disruptions
By Aboki Forex —
The Nigerian Electricity Regulatory Commission has approved a special compensation package for eligible Band A electricity customers. This follows months of severe power disruptions caused by generation shortfalls across the national grid.
Many consumers paid premium tariffs but endured unstable supply between February and March 2026. In a public notice released on Thursday, June 4, 2026, NERC said the directive addresses service failures that prevented distribution companies from meeting the minimum daily supply commitment for Band A customers.
Gas shortages and vandalism blamed
NERC blamed the prolonged outages on factors beyond the control of electricity distribution companies. Inadequate gas supply to thermal plants and repeated vandalism of gas and transmission infrastructure weakened electricity generation nationwide in the first quarter of 2026.
Industry data from the Nigerian Independent System Operator showed the scale of the crisis. Thermal plants needed about 1,629.75 million standard cubic feet of gas daily to operate effectively. Actual gas supply dropped to around 692 million standard cubic feet per day in February. That is less than 43 percent of the required volume.
As generation capacity collapsed, several power plants shut down. The Transmission Company of Nigeria resorted to nationwide load shedding to ration available electricity among distribution companies.
Who qualifies for compensation
Under the new directive, Band A customers connected to feeders that received less than 18 hours of electricity supply daily during the affected period will qualify for special compensation. Feeders averaging between 18 and 20 hours of supply will continue under the existing compensation framework.
NERC assured consumers that affected Band A feeders would not be downgraded despite the service shortfalls.
Compensation varies by customer category. For non-maximum demand customers, compensation equals 20 percent of the approved February 2026 energy cap applicable to the affected feeder. Maximum demand customers will receive compensation equivalent to 20 percent of the average energy billed per customer in February 2026.
Payment deadlines and rules
Prepaid users will receive token credits directly into their meters. Postpaid customers will get bill adjustments reflected in subsequent invoices.
Distribution companies must complete compensation for February 2026 no later than May 31. Compensation for March 2026 must be concluded by June 30, 2026.
NERC warned that DisCos are prohibited from using compensation credits to offset existing customer debts. Operators must clearly inform customers about the exact value and period covered by the compensation.
This announcement comes as electricity distribution companies reportedly generated nearly N600 billion from consumers in the first quarter of 2026 alone. Many Nigerians endured months of blackouts during the period, though some consumers have recently reported gradual improvements in electricity supply across parts of the country.
NERC said it will continue monitoring compliance to ensure all eligible customers receive the compensation due to them while maintaining stability in Nigeria’s fragile electricity market.
Earlier, the Transmission Company of Nigeria announced an extension of maintenance work on the Jos–Bauchi–Gombe 330kV transmission line. That development will result in prolonged electricity disruptions across parts of Northern Nigeria until June 30, 2026. The extension is aimed at completing the installation of Optical Ground Wire to improve efficiency and reliability of power transmission along the corridor.