FG Approves Compensation for Band A Electricity Customers Hit by Grid Failures — NERC Orders DisCos to Issue Refunds

The Nigerian Electricity Regulatory Commission (NERC) has ordered distribution companies to compensate Band A customers who suffered prolonged power outages during grid failures in February and March this year.

Under Directive No. NERC/2026/002, DisCos must issue refunds to premium customers hit by generation shortfalls that NERC blamed on “inadequate gas supply and vandalism of critical gas and transmission infrastructure.”

For feeders that received less than 18 hours of supply daily, DisCos must pay compensation equivalent to 20 per cent of the approved energy cap for non-MD customers, or 20 per cent of average billed energy for Maximum Demand customers.

Prepaid customers will receive token credits. Postpaid customers will see adjustments on their bills. And in a key detail — NERC has barred DisCos from offsetting the compensation against any existing customer debts.

February shortfalls must be compensated by May 31, 2026. March compensation must be applied by June 30. Affected Band A feeders will not be downgraded during this period, meaning customers keep their premium service classification.

NERC said it “will continue to monitor implementation and verify compliance” by the distribution companies.

Sources: Tribune, Guardian, Energy Focus Report