FG Grants Compensation To Band A Electricity Customers

According to Ireporter Online, the Nigerian Electricity Regulatory Commission (NERC) has approved a compensation scheme for Band A electricity customers who experienced reduced power supply between February and March 2026, following shortfalls in generation across the national grid.

In a notice issued on Thursday, the regulator explained that the decision was triggered by a decline in electricity generation within the Nigerian Electricity Supply Industry, which limited the ability of distribution companies to deliver the required daily supply hours to certain Band A feeders.

NERC attributed the disruption largely to inadequate gas supply as well as damage to critical gas infrastructure and transmission facilities, noting that these challenges were beyond the control of distribution companies but still had a direct impact on service delivery.

Under the approved arrangement, Band A feeders that still received between 18 and 20 hours of electricity daily will remain under the existing compensation framework already in place. However, feeders that received less than 18 hours of supply will not be downgraded during the affected period. Instead, customers connected to such feeders will be entitled to compensation.

The commission further stated that non-MD customers will receive compensation equivalent to 20 percent of their approved energy cap for February 2026, while MD customers will get 20 percent of their average billed energy for the same month.

It added that prepaid customers will benefit through token credits, while postpaid customers will have their bills adjusted accordingly.

NERC directed that compensation for February 2026 must be completed by May 31, 2026, while payments for March 2026 are expected to be concluded by June 30, 2026.

The regulator also instructed electricity distribution companies not to offset the compensation against existing customer debts and mandated them to clearly communicate the value and duration of the relief to affected consumers.