The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls resulting from grid generation constraints between February and March 2026.

In a public notice issued on Thursday, the regulator said the directive was necessitated by significant generation shortages across the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from meeting the minimum service levels guaranteed to some Band A customers.

According to NERC, the supply disruptions were primarily caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the DisCos.

The commission stated that the compensation scheme applies to the period covering February and March 2026.

Under the directive, Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours will continue to be compensated in line with the provisions of Addendum No. NERC/2024/003. The framework applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

For Band A feeders that received less than 18 hours of electricity supply during the affected period, NERC said the feeders would not be downgraded. Instead, eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their respective feeders. Eligible MD customers, on the other hand, will be compensated with an amount equivalent to 20 per cent of the average energy billed per MD customer in February 2026.

The commission explained that prepaid customers will receive the compensation through token credits, while postpaid customers will benefit through bill adjustments.

NERC directed DisCos to complete compensation payments for February 2026 by May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 2026.

The regulator further prohibited DisCos from applying compensation credits to offset any existing customer debts and instructed them to clearly communicate the value and applicable period of the compensation to affected customers.

Reaffirming its commitment to consumer protection and the long-term sustainability of the electricity market, NERC said it would continue to monitor the implementation of the directive and verify compliance by DisCos to ensure that all eligible customers receive the compensation due to them.

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