The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A customers impacted by power supply shortfalls resulting from grid generation constraints between February and March 2026.
Public Notice and Rationale
In a public notice issued on Thursday, June 4, the commission stated that the directive was necessitated by significant generation shortages across the Nigerian Electricity Supply Industry (NESI). These shortages hindered Distribution Companies (DisCos) from delivering committed service levels to some Band A customers.
According to NERC, the shortfalls were primarily caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the DisCos.
Compensation Framework
The compensation scheme covers the period from February to March 2026. Under the directive, Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to be compensated under the existing framework outlined in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For Band A feeders receiving less than 18 hours of electricity supply, NERC stated that the affected feeders would not be downgraded during the covered period. Instead, eligible Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeders. MD customers will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.
Payment Methods and Deadlines
The commission specified that prepaid customers will receive compensation through token credits, while postpaid customers will benefit from bill adjustments. NERC directed that compensation for February 2026 must be completed by May 31, 2026, while compensation for March 2026 must be implemented no later than June 30, 2026.
NERC also barred DisCos from offsetting compensation credits against any existing customer debts and instructed them to clearly inform customers of the value and period of compensation received.
Monitoring and Compliance
The commission added that it would continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.
