The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced power supply shortfalls between February and March 2026 due to nationwide generation constraints.
In a public notice issued on Thursday, the commission explained that the decision followed significant generation shortages across the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from delivering the minimum service levels promised to some Band A customers during the affected period.
NERC attributed the supply disruptions largely to inadequate gas availability and the vandalism of critical gas and transmission infrastructure. The commission noted that these challenges were beyond the direct control of the electricity distribution companies.
According to the directive, Band A feeders that maintained an average daily electricity supply of between 18 and 20 hours will continue to receive compensation under the existing framework outlined in Addendum No. NERC/2024/003, covering both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For Band A feeders that received less than 18 hours of electricity supply, NERC stated that the affected feeders would not be downgraded during the compensation period. Instead, eligible Non-MD customers will receive credits equivalent to 20 per cent of the approved February 2026 energy cap for their feeders, while MD customers will receive compensation equal to 20 per cent of the average energy billed per MD customer in February 2026.
The commission directed that prepaid customers receive their compensation through token credits, while postpaid customers will benefit from bill adjustments. It also ordered DisCos to complete compensation for February 2026 by May 31 and for March 2026 by June 30, while prohibiting the deduction of compensation credits to offset existing customer debts. NERC said it will continue to monitor compliance to ensure all eligible customers receive the compensation due to them while safeguarding consumer interests and maintaining electricity market stability.
Elijah Adeyemi
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