Written by
Ishioma Appiah-Yeboah
The Nigerian Electricity Regulatory Commission, NERC, has approved a special compensation package for eligible Band A electricity customers affected by power supply disruptions caused by grid generation constraints between February and March 2026.
In a public notice, the commission said the directive was introduced following significant generation shortfalls across the Nigerian Electricity Supply Industry, which hindered Distribution Companies, also known as DisCos, from delivering the committed service levels to some Band A customers.
According to NERC, the shortfalls were mainly caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the DisCos.
Under the directive, customers on Band A feeders that recorded an average daily supply of between 18 and 20 hours during the affected period will be compensated in line with the existing regulatory framework.
For Band A feeders that received less than 18 hours of electricity supply, affected customers will receive special compensation without being downgraded to a lower service band.
Non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their feeder, while maximum demand customers will receive 20 per cent of the average energy billed per customer in February 2026.
NERC stated that prepaid customers will receive compensation through token credits, while postpaid customers will benefit through bill adjustments.
The commission directed that compensation for February 2026 be completed by May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 2026.
It also warned Distribution Companies against using compensation credits to offset any outstanding customer debts and directed them to clearly communicate the value and period of compensation to beneficiaries.
NERC reaffirmed its commitment to protecting electricity consumers and ensuring compliance across the power sector.