The NERC Band A compensation order is now in force, with the Nigerian Electricity Regulatory Commission directing distribution companies to pay eligible Band A customers for electricity they were promised but did not receive. The regulator issued the directive, numbered NERC/2026/002, on 4 June 2026 after supply fell short on some feeders.
How much the NERC Band A compensation is worth
For ordinary, non-maximum-demand customers, the payout equals 20% of the approved February 2026 energy cap on the affected feeder. For maximum-demand customers, it is 20% of the average energy billed per maximum-demand customer in February 2026. The amount therefore depends on your feeder and your billing class, not a flat figure for everyone. Two homes on different feeders can see very different credits.
Which customers qualify
Band A customers sit at the top of Nigeria’s electricity banding and are promised the highest number of supply hours each day. The compensation covers Band A feeders that failed to meet that guaranteed level during February and March 2026. Customers on lower bands are not covered by this particular directive, which is tied to the specific shortfall in those two months rather than to poor service in general.
Because Band A users pay the highest tariff in exchange for the most hours, the regulator treats a missed supply commitment as a service failure that must be repaid. That link between premium pricing and guaranteed hours is the core idea behind the order.
How you will be paid
Prepaid customers will receive token credits, while postpaid customers will see deductions or adjustments on their bills. The commission set firm deadlines: February 2026 compensation had to be completed by 31 May 2026, and March 2026 payments must be concluded by 30 June 2026. Crucially, distribution companies are barred from using the credits to offset any existing customer debt, so the value should reach the customer in full.
Why supply fell short
NERC blamed the disruption largely on inadequate gas supply and the vandalism of critical gas and transmission infrastructure. The regulator described these as factors outside the direct control of the distribution companies, while still holding them to the service standard that Band A customers pay premium tariffs to enjoy. The order makes clear that the cause of a shortfall does not cancel the duty to compensate.
The directive also adds pressure on the wider power sector to fix the gas and grid problems behind the shortfall. Compensation refunds money to customers, but it does not restore the lost supply hours. Industry watchers say the lasting fix lies in steadier gas delivery to power plants and tighter security around pipelines and transmission lines, so that Band A feeders meet their promised hours and refunds like this become rare rather than routine.
Affected customers should check their meter tokens or recent bills for the adjustment, keep a record of supply hours, and contact their distribution company if the credit does not appear. With the March deadline at the end of June, the coming weeks will show how fully the DisCos comply. Viorah TV will keep tracking the rollout.
