NERC Unveils Compensation for Band A Users: How Nigerians Can Claim Rebates
- NERC approves special compensation for Band A electricity customers amid severe supply disruptions
- Inadequate gas supply and vandalism caused significant power generation shortfalls across Nigeria in early 2026
- Eligible customers will receive rebates with strict deadlines for distribution companies to complete payments
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers after months of severe power disruptions caused by generation shortfalls across the national grid.
The move comes amid growing frustration among electricity consumers who continued to pay premium tariffs despite experiencing unstable supply between February and March 2026.
Source: Getty Images
In a public notice released on Thursday, June 4, 2026, the commission disclosed that the compensation directive was introduced to address widespread service failures that prevented some electricity distribution companies (DisCos) from meeting the minimum daily supply commitment promised to Band A customers.
According to NERC, the intervention is backed by Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
Why Nigerians experienced a poor power supply
According to a report by Punch, NERC blamed the prolonged outages on factors beyond the direct control of electricity distribution companies.
The regulator explained that inadequate gas supply to thermal power plants and repeated vandalism of critical gas and transmission infrastructure severely weakened electricity generation nationwide during the first quarter of 2026.
Industry data released by the Nigerian Independent System Operator showed the scale of the crisis.
Thermal plants reportedly required about 1,629.75 million standard cubic feet of gas daily to operate effectively, but actual gas supply dropped to around 692 million standard cubic feet per day in February — less than 43 per cent of the required volume.
As generation capacity collapsed, several power plants shut down while the Transmission Company of Nigeria resorted to nationwide load shedding to ration available electricity among distribution companies.
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Who qualifies for the 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.
However, NERC clarified that feeders averaging between 18 and 20 hours of supply will continue under the existing compensation framework introduced in earlier regulations.
The commission also assured consumers that affected Band A feeders would not be downgraded despite the service shortfalls recorded during the period under review.
How customers will receive their rebates
NERC explained that compensation would vary depending on customer category.
For non-maximum demand customers, compensation will equal 20 per cent of the approved February 2026 energy cap applicable to the affected feeder.
Meanwhile, maximum demand customers will receive compensation equivalent to 20 per cent of the average energy billed per customer in February 2026.
The regulator added that prepaid users would receive token credits directly into their meters, while postpaid customers would get bill adjustments reflected in subsequent invoices.
Deadline for DisCos to pay compensation
Electricity distribution companies have been directed to complete compensation for February 2026 no later than May 31, while compensation for March 2026 must be concluded by June 30, 2026.
To protect consumers, NERC warned that DisCos are prohibited from using compensation credits to offset existing customer debts.
Source: Getty Images
The commission also instructed operators to clearly inform customers about the exact value and period covered by the compensation.
Fresh questions over Nigeria’s power sector
The announcement comes, although electricity distribution companies reportedly generated nearly N600 billion from consumers in the first quarter of 2026 alone.
Although many Nigerians endured months of blackouts during the period, some consumers have recently reported gradual improvements in electricity supply across parts of the country.
NERC said it would continue monitoring compliance to ensure all eligible customers receive the compensation due to them while maintaining stability in Nigeria’s fragile electricity market.
TCN alerts three states of power outage
Legit.ng earlier reported that the Transmission Company of Nigeria (TCN) has announced an extension of the ongoing maintenance work on the Jos–Bauchi–Gombe 330kV transmission line, a development that will result in prolonged electricity disruptions across parts of Northern Nigeria until June 30, 2026.
The extension is aimed at enabling contractors to complete the installation of the Optical Ground Wire (OPGW), a key infrastructure project designed to improve the efficiency, monitoring, and reliability of power transmission along the corridor.
In a statement, TCN's general manager of public affairs, Ndidi Mbah, explained that the maintenance exercise, which began earlier this year, has been prolonged to allow for the completion of the OPGW stringing project on the 276-kilometre Jos–Bauchi–Gombe transmission line.
Source: Legit.ng
