NERC Offers Compensation to Band A Customers after Power Shortfalls

The Nigerian Electricity Regulatory Commission (NERC) has approved special compensation for eligible Band A electricity customers who were affected by supply shortfalls during February and March of this year.

According to NERC, Band A customers are supposed to receive around 20 hours of power each day. 

It announced that over the two-month period, a combination of generation shortages, poor gas supply and vandalism of critical gas and transmission infrastructure meant that some feeders did not meet that service level. 

Rather than downgrading those feeders, the regulator has opted to compensate the customers directly.

Under the arrangement, feeders that averaged between 18 and 20 hours of supply will continue to be covered by the existing compensation framework. 

For feeders that recorded less than 18 hours on average, eligible customers will receive additional compensation equivalent to 20 per cent of their energy costs for the period in question.

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Prepaid customers will see the compensation issued as token credit, while postpaid customers will receive it as a bill adjustment or credit. 

NERC has stressed that affected Band A feeders will not be downgraded during February and March, and that distribution companies are not permitted to use the compensation to offset any outstanding debts. 

The commission also said customers must be clearly informed about the value of compensation they receive.

It further revealed DisCos have been given deadlines to complete the payments. 

Compensation for February is expected to be finished by the 31st of May 2026, while March compensation must be completed by the 30th of June 2026. 

NERC stated it will monitor compliance to ensure customers get what they are owed.


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