NERC directs DisCos to compensate Band A customers with electricity units, bill adjustments for supply shortfall

Electricity Meters

NERC directs DisCos to compensate Band A customers with electricity units, bill adjustments for supply shortfall

The Nigerian Electricity Regulatory Commission (NERC) has ordered Distribution Companies (DisCos) to compensate Band A customers with electricity units and bill adjustments after failing to meet promised supply levels between February and March 2026.

The directive ensures that affected customers receive credits equivalent to 20% of their billed energy, with prepaid users getting token credits and post-paid users receiving bill reductions.

The Nigerian Electricity Regulatory Commission (NERC) issued Order No. NERC/2026/002 mandating compensation for Band A customers who experienced electricity supply shortfalls.  Band A customers are premium consumers expected to receive at least 20 hours of electricity daily under the service-based tariff regime.

The disruptions were attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, which limited generation capacity across the national grid.

The directive covers the period February–March 2026, during which many feeders failed to deliver the minimum service levels.

Non-Maximum Demand (Non-MD) customers will receive credits equal to 20% of the approved February 2026 energy cap. Maximum Demand (MD) customers will receive credits equal to 20% of the average energy billed per MD customer in February 2026.

Compensation continues under the existing framework (Addendum No. NERC/2024/003).

Prepaid customers: Compensation will be issued as electricity token credits. Postpaid customers: Compensation will be applied through bill adjustments.

Implementation Deadlines

February 2026 compensation: Must be completed by May 31, 2026. March 2026 compensation: Must be completed by June 30, 2026.

NERC also prohibited DisCos from using compensation credits to offset existing customer debts, ensuring that relief directly benefits consumers.

Consumer Protection and Market Stability

This intervention underscores NERC’s commitment to consumer protection and market accountability.

By enforcing compensation, the regulator aims to: Preserve confidence in the service-based tariff system, Ensure DisCos remain accountable for service delivery, Protect customers who pay premium tariffs but suffer from unreliable supply.

Editorial Perspective

The directive is both a consumer victory and a regulatory milestone. For too long, Nigerian electricity consumers have endured erratic supply while paying high tariffs.

By compelling DisCos to compensate Band A customers, NERC is signaling that premium tariffs must come with premium service. However, the underlying issues, gas shortages, vandalism, and infrastructure fragility, remain unresolved.

Without addressing these systemic challenges, compensation may only serve as a temporary palliative rather than a sustainable solution. The real test lies in whether NERC can enforce compliance consistently and whether DisCos can improve reliability in the long term.