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.
The Commission announced the directive in a statement issued on Thursday, saying the measure was introduced to cushion the impact of significant generation shortfalls recorded within the Nigerian Electricity Supply Industry (NESI) between February and March 2026.
According to NERC, the shortfalls prevented several Distribution Companies (DisCos) from meeting the minimum service commitments required for Band A customers.
The Commission explained that the supply challenges were mainly caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors beyond the direct control of electricity distribution companies.
Under the new directive, the compensation scheme will cover the period between February and March 2026.
NERC stated that Band A feeders that recorded an average daily power supply of between 18 and 20 hours during the affected period would continue to enjoy compensation under the existing framework contained in Addendum No. NERC/2024/003.
The Commission noted that the arrangement 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 daily, NERC said affected feeders would not be downgraded during the covered period. Instead, eligible customers would receive special compensation.
Under the compensation plan, Non-MD customers will receive credits equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeder.
Similarly, MD customers will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.
The Commission explained that prepaid customers would receive the compensation through electricity token credits, while postpaid customers would benefit through adjustments to their bills.
To ensure timely implementation, NERC directed that compensation for February 2026 must be completed no later than May 31, 2026, while compensation for March 2026 must be effected on or before June 30, 2026.
As part of customer protection measures, the regulator prohibited Distribution Companies from deducting compensation credits to settle any outstanding customer debts.
It also directed that customers must be clearly informed of both the value of the compensation received and the period it covers.
“NERC expressed commitment to protecting electricity consumers, while ensuring the stability and sustainability of the electricity market,” the statement said.
The Commission further assured consumers that it would closely monitor the implementation of the directive and verify compliance by Distribution Companies to ensure that all eligible customers receive the compensation due to them.
