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Electricity: AEDC to Begin Compensation for Band A Customers Across Four States After NERC Directive

The Abuja Electricity Distribution Company (Abuja Electricity Distribution Company) has announced plans to commence compensation for eligible Band A electricity customers across four states following a directive from the Nigerian Electricity Regulatory Commission (NERC) over service shortfalls recorded between February and March 2026.

The directive, contained in NERC/2026/002, applies to customers affected by reduced electricity supply caused by nationwide grid generation constraints, including gas supply shortages and vandalism of critical energy infrastructure. The affected AEDC coverage areas include the Federal Capital Territory (FCT), Niger, Nasarawa, and Kogi states.

Compensation framework

According to the regulatory order, customers on feeders that received less than 18 hours of electricity daily during the review period will receive special compensation. Eligible users will be credited based on their customer type:

• Non-Maximum Demand (Non-MD) customers: 20% of the approved energy cap
• Maximum Demand (MD) customers: 20% of average energy billed for the period

Prepaid customers will receive token credits, while postpaid users will get bill adjustments.

No downgrade for affected feeders

NERC also directed that impacted Band A feeders will not be downgraded despite the service shortfall, a move aimed at maintaining tariff classification stability while compensation is processed.

Implementation timeline

AEDC and other distribution companies are required to complete compensation for:

• February 2026 service shortfall by 31 May 2026
• March 2026 service shortfall by 30 June 2026

The regulator further warned DisCos not to use compensation credits to offset existing customer debts and instructed them to clearly inform customers about the value of credits issued.

Regulatory stance

NERC reaffirmed its commitment to consumer protection and insisted it will monitor compliance to ensure all eligible customers receive due compensation under the scheme.