Nigerian Electricity Regulatory Commission, NERC has approved a special compensation package for eligible Band A electricity customers affected by power supply disruptions caused by generation constraints across the country’s electricity sector.
In a public notice announcing Directive No. NERC/2026/002, the Commission said the measure was introduced following significant generation shortfalls recorded between February and March 2026, which prevented electricity distribution companies, DisCos from meeting their committed service levels to some Band A customers.
According to NERC, the shortfalls were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the distribution companies.
The directive covers the period from February to March 2026 and provides compensation for Band A customers who did not receive the minimum hours of electricity supply stipulated under the service-based tariff framework.
Under the new arrangement, Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to receive compensation under the existing framework established by Addendum No. NERC/2024/003 for both Maximum Demand, MD and Non-Maximum Demand, Non-MD customers.
For feeders that received less than 18 hours of electricity supply daily, NERC said affected customers would receive special compensation while retaining their Band A classification during the covered period.
The commission explained that eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder, while MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC further stated that prepaid customers will receive the compensation through token credits, while postpaid customers will benefit through bill adjustments.
To ensure timely implementation, the regulator directed that compensation for February 2026 be completed not later than May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.
The commission also prohibited DisCos from offsetting the compensation credits against any outstanding customer debts and directed that consumers be clearly informed of the value and period of compensation received.
Band A customers are expected to receive a minimum of 20 hours of electricity supply daily under Nigeria’s service-based tariff regime.
NERC said the special compensation directive is aimed at protecting consumers while maintaining stability and sustainability within the Nigerian Electricity Supply Industry (NESI).
The commission assured consumers 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.
(Editor: Terverr Tyav)
