"Please be Informed": Nigerian DisCos Quietly Refund Customers Over Poor Power Supply
- DisCos in Nigeria have started compensating for failing to provide the minimum 20 hours of daily power required under the Band A tariff
- In Lagos, EKEDC issued refunds, including one payment of about N30,628.90, linked to poor supply in February 2026
- The NERC says the compensation is meant to enforce compliance and ensure customers are not charged premium rates for substandard service
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria’s electricity distribution companies have begun issuing account credits worth tens of thousands of naira to customers as compensation for failing to deliver the minimum required electricity supply under the Band A tariff structure.
The refunds highlight growing enforcement of performance obligations in a sector long criticised for unreliable service despite high charges.
Source: UGC
Compensation credits begin to reflect service shortfalls
In Lagos, customers under the Eko Electricity Distribution Company recently received notifications showing credit adjustments to their accounts.
In one case, a customer was credited N30,628.90, labelled as compensation for the company’s inability to meet the required Band A supply hours in February 2026.
According to the email, the DisCo stated:
:"Dear customer, please be informed that the sum of N30,628.90 has been credited to your account number ***** with meter number ***** as compensation for February 2026 Band A minimum supply hours non-compliance."
The messages, delivered via email, included detailed account and meter information, tying the payments directly to regulatory compliance requirements rather than voluntary goodwill gestures.
Band A pricing model and unmet supply expectations
Under Nigeria’s Band A classification, consumers pay the highest electricity rates—now exceeding N200 per kilowatt-hour—on the understanding that they should receive at least 20 hours of electricity daily. The arrangement is meant to link higher tariffs with improved service reliability.
However, when electricity distribution companies fail to meet that minimum supply threshold, rules set by the Nigerian Electricity Regulatory Commission (NERC) require them to compensate affected customers.
The compensation is calculated based on the shortfall in expected supply hours and the amount of energy not delivered.
Enforcement challenges and regulatory pressure
Although the framework for compensation has existed for some time, implementation was previously inconsistent, with many consumers rarely seeing any form of reimbursement despite frequent supply gaps across different tariff bands.
Recent tariff reforms were designed to improve financial sustainability in the power sector while also protecting customers from paying premium prices for inadequate service.
Source: UGC
While enforcement is still uneven across cities such as Lagos, Abuja, and Port Harcourt, regulators have recently taken a firmer stance, emphasising the need for distribution companies to comply with service-level agreements.
Officials at the Nigerian Electricity Regulatory Commission have increasingly pointed to the compensation mechanism as a key accountability tool, suggesting a gradual shift toward stricter oversight of electricity providers and their performance obligations.
Source: Legit.ng
