The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for Band A electricity customers affected by power supply shortfalls caused by grid generation constraints between February and March 2026.
The commission announced the decision in Directive No. NERC/2026/002, published on its website on Thursday.
According to NERC, the directive was introduced in response to significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) during the period, which hindered Electricity Distribution Companies (DisCos) from meeting the minimum service commitments promised to some Band A customers.
The commission attributed the disruptions primarily to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct operational control of the distribution companies.
Under the directive, Band A feeders that maintained an average daily electricity supply of between 18 and 20 hours during the affected period will continue to be covered by the existing compensation framework established under Addendum No. NERC/2024/003.
The arrangement applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, for Band A feeders that recorded less than 18 hours of average daily supply, a special compensation mechanism has been introduced.
NERC stated that such feeders would not be downgraded during the period covered by the directive despite failing to meet the prescribed service level requirements.
Under the special arrangement, Non-MD customers connected to affected feeders will receive compensation equivalent to 20 per cent of the approved February energy cap for their respective feeders.
Similarly, MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February.
The commission explained that compensation would be provided through token credits for prepaid customers and bill adjustments for customers on postpaid billing systems.
NERC directed all DisCos to complete compensation for February service shortfalls by May 31, while compensation for March must be concluded by June 30.
The commission also prohibited distribution companies from using the compensation credits to offset any outstanding debts owed by customers.
In addition, DisCos are required to clearly communicate the value and period of compensation granted to each eligible customer.
“The commission remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” NERC stated.
It added that it would continue to monitor implementation and verify compliance by distribution companies to ensure that all eligible customers receive the compensation due to them.
The directive is part of ongoing regulatory efforts to balance consumer protection with the operational realities facing the Nigerian power sector amid recurring generation and infrastructure challenges.
