Nigerian regulator orders compensation for premium users

The Nigerian Electricity Regulatory Commission has ordered electricity distribution companies to provide compensation to certain premium customers who experienced significant power shortfalls earlier this year. The directive, issued on Thursday, mandates credits for eligible Band A customers affected by generation constraints between February and March 2026.

The regulator stated that inadequate gas supply and vandalism of critical gas and transmission infrastructure led to significant generation shortfalls across the national grid. These constraints prevented distribution companies from delivering the guaranteed minimum service levels to some Band A customers, who are promised a higher tier of supply. Officials noted that these factors were largely beyond the direct operational control of the distribution firms.

Under the new directive, a special compensation framework applies to Band A feeders that supplied less than 18 hours of electricity per day during the two-month period. Those feeders will not be downgraded, and eligible customers will receive compensation. For non-maximum demand customers, typically smaller consumers, this equals 20 percent of the approved February 2026...