Electricity distribution companies have been directed to credit eligible Band A customers who experienced prolonged supply shortfalls between February and March 2026, following a ruling by the Nigerian Electricity Regulatory Commission (NERC) that service levels failed to meet the 20-hour daily supply benchmark for the tariff band.
NERC attributed the shortfalls to broader system constraints, including limited power generation due to inadequate gas supply and vandalism affecting gas and transmission infrastructure.
The commission noted that these challenges affected operators across the sector, even though they were largely beyond the immediate control of distribution companies.
In its order issued yesterday, the regulator clarified that Band A feeders that recorded an average of 18 to 20 hours of daily supply would continue to be eligible for compensation for both maximum demand and non-maximum demand customers under existing rules.
However, feeders that delivered below 18 hours daily will not be reclassified for the affected months. Instead, eligible non-maximum demand customers on those feeders will receive credits equivalent to 20% of their approved February 2026 energy cap.
Maximum demand customers on underperforming feeders will also be compensated, receiving credits equal to 20% of their average energy billed in February 2026. The compensation will be applied as prepaid top-ups for prepaid customers or bill deductions for postpaid users.
NERC set May 31, 2026 as the deadline for February compensation payments and June 30, 2026 for March. It also directed distribution companies to clearly disclose the value and period of each credit, and warned that the funds must not be used to offset customer arrears.