The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by grid generation constraints that disrupted power supply across the country between February and March 2026.
In a public notice issued on Thursday, the Commission announced the release of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.NERC explained that the directive was introduced in response to significant generation shortfalls experienced within the Nigerian Electricity Supply Industry (NESI) during the two-month period, which hindered Distribution Companies (DisCos) from delivering their committed service levels to some Band A customers.
According to the Commission, the shortfalls were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, circumstances beyond the direct operational control of the DisCos.Under the directive, the compensation scheme covers the period from February to March 2026.
The Commission stated that where Band A feeders recorded an average daily electricity supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 would apply 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 per day, NERC said affected feeders would not be downgraded during the covered period. Instead, eligible customers would receive special compensation.
Non-MD customers are to receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder, while MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.The Commission further directed that prepaid customers should receive compensation through token credits, while postpaid customers would be compensated through bill adjustments.
To ensure timely implementation, NERC mandated DisCos to complete compensation for February 2026 no later than May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.As part of customer protection measures, the regulator prohibited Distribution Companies from offsetting compensation credits against existing customer debts. It also directed DisCos to clearly communicate the value and period of compensation received by affected customers.
NERC reaffirmed its commitment to safeguarding electricity consumers while maintaining the stability and sustainability of the nation’s electricity market.
The Commission stated 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
