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NERC Approves Special Compensation for Band A Electricity Customers Over Service Shortfalls

The Nigerian Electricity Regulatory Commission (Nigerian Electricity Regulatory Commission) has approved a special compensation framework for Band A electricity customers following concerns over persistent shortfalls in power supply commitments.

Band A customers, who are expected to receive a minimum of 20 hours of electricity supply daily under the current tariff structure, have repeatedly raised complaints over inadequate service delivery by distribution companies (DisCos). The new directive is aimed at strengthening accountability and ensuring that customers are fairly compensated whenever operators fail to meet agreed service levels.

According to the regulatory framework, DisCos will now be required to implement automatic or verified compensation mechanisms where Band A feeders experience prolonged outages or fail to meet the minimum supply threshold. This move is also expected to push electricity providers to improve infrastructure reliability and service consistency.

NERC stated that the initiative aligns with its broader mandate of consumer protection, fair billing, and service-based tariff enforcement under the ongoing electricity sector reforms. The commission emphasized that customers should not pay premium tariffs without receiving commensurate service quality.

Energy experts have welcomed the decision, noting that it could improve transparency in the power sector and encourage better performance from DisCos, though they also caution that effective monitoring and enforcement will be key to its success.